At Baidu's recent developer conference, founder Robin Li announced a significant shift in China’s AI development trajectory, emphasizing a decline in demand for text-only AI models like those from DeepSeek. He criticized DeepSeek’s text-centric approach for being prone to “hallucinations” (inaccurate outputs), slower processing, and higher maintenance costs compared to Baidu’s and other domestic competitors’ multimodal models. In response, Baidu introduced two advanced multimodal AI models, Ernie 4. 5 Turbo and X1 Turbo, capable of processing audio, images, and video, offering a more versatile, accurate, and cost-efficient AI experience. Baidu also revealed key strategic changes, including open-sourcing its AI models to foster broader innovation and adoption. Meanwhile, it will discontinue its chatbot subscription services amid fierce competition from Alibaba, ByteDance, and DeepSeek.

Despite Li’s criticisms, Baidu continues collaborating with DeepSeek by integrating its technology into vital platforms such as Qianfan (a business app) and Baidu Maps, reflecting a pragmatic partnership approach within the competitive AI landscape. Further expanding its AI ecosystem, Baidu launched Xinxiang, an AI agent application aimed at enhancing user experience through intelligent assistance, entering a competitive market alongside Alibaba and various startups. To support these AI advancements, Baidu announced plans to build a massive AI computing cluster outfitted with 30, 000 Kunlun P800 chips, significantly boosting its computational power and infrastructure capacity needed for large-scale multimodal model training and deployment. Industry analysts reacted positively, viewing Baidu’s efforts—multimodal models, open-source initiatives, and infrastructure investments—as catalysts that will accelerate AI adoption across sectors in China, intensify market competition, and consolidate Baidu’s leadership. Investor confidence was reflected in an over 4% rise in Baidu’s stock price immediately after the conference. In sum, Baidu’s recent announcements underscore its commitment to evolving beyond traditional text-only AI by focusing on multimodal capabilities, technology sharing, enhanced hardware resources, and competitive service offerings, positioning the company firmly at the forefront of China’s dynamic and competitive AI industry.