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Baidu (NASDAQ:BIDU) will open-source its next-generation Ernie AI model from June 30, marking a major strategy shift as competition in the AI sector intensifies. The move comes after the rise of DeepSeek, an open-source AI startup claiming performance on par with OpenAI's systems at a lower cost.
Baidu CEO Robin Li, previously a proponent of closed-source models, acknowledged at an event in Dubai that open-source development could accelerate AI adoption. "Opening things up will spark curiosity and help spread the technology faster," he said.
To boost market share, Baidu will make its Ernie Bot chatbot free starting April 1, about 18 months after its premium launch. Despite significant AI investments since OpenAI’s ChatGPT debuted in 2022, Baidu's Ernie model has struggled with adoption. According to Aicpb.com, as of January, ByteDance's Doubao chatbot leads the Chinese market with 78.6 million monthly users, followed by DeepSeek with 33.7 million and Ernie Bot with 13 million.
Baidu claims its current model, Ernie 4.0, matches OpenAI’s GPT-4 in performance. The company also announced it will gradually roll out the Ernie 4.5 series in the coming months, with the official open-source release set for June 30. Additionally, Baidu is preparing to launch its next-generation Ernie 5 model in the second half of 2025, according to a source familiar with the matter.
The open-source pivot highlights Baidu's bid to increase Ernie’s market share and attract more developers amid rising competition from ByteDance and DeepSeek. With AI adoption accelerating globally, this strategic shift could strengthen Baidu’s position in the evolving AI landscape.
