Baidu CEO Robin Li made a surprising announcement that their AI model Ernie 4.5 would be open source, citing the success of DeepSeek as an inspiration. This unexpected decision marks a departure from Li’s previous stance that closed-source models were superior in terms of power and cost-efficiency. The move caused a surge in Baidu’s shares following the announcement that their AI chatbot would be free starting April 1. DeepSeek’s open-sourced AI model, which outperformed top developers’ models, highlighted the advantages of open-sourcing the best models for broader adoption. Baidu’s reversal in strategy to embrace open-source models reflects a shift in the industry landscape, with other tech leaders also recognizing the benefits of this approach. In a competitive market, Baidu’s strategic moves, including making their AI chatbot free and open-sourcing their latest model, position the company for growth and innovation.
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