Baidu to Launch Next-Gen AI Model in 2025 as DeepSeek Disrupts Market

Chinese tech giant Baidu is gearing up to release Ernie 5.0, its next-generation artificial intelligence model, in the second half of 2025, according to sources familiar with the matter. The upgrade comes as China’s AI industry accelerates innovation, with new players like DeepSeek shaking up the competitive landscape.

Ernie 5.0: Advancing Multimodal AI Capabilities

Ernie 5.0, classified as a “foundation model,” is expected to deliver significant enhancements in multimodal AI—allowing it to seamlessly process and integrate text, images, videos, and audio. This capability would enable advanced functions such as text-to-video conversion and vice versa, positioning Ernie 5.0 as a more versatile AI tool.

Foundation models like Ernie can perform a wide range of AI-driven tasks, including natural language processing (NLP), text and image generation, and other enterprise-grade applications.

China’s AI Battle: Baidu vs. OpenAI and Emerging Competitors

Baidu’s AI upgrade arrives amid fierce competition in China’s AI race. The country’s top tech firms are striving to match or surpass OpenAI and other U.S.-based AI leaders.

In January 2025, Hangzhou-based startup DeepSeek sent shockwaves through global financial markets with the launch of an open-source AI model boasting superior reasoning capabilities and significantly lower costs compared to OpenAI’s ChatGPT. This development ignited concerns among tech investors and added urgency to Baidu’s AI strategy.

Baidu’s AI Evolution: From Ernie 4.0 to the Future

Baidu was the first major Chinese tech firm to debut a ChatGPT-style AI chatbot, launching Ernie 4.0 in October 2023 and a “turbo” version in August 2024. However, despite its early lead, Baidu has faced growing competition from AI models developed by Alibaba, ByteDance, and emerging startups.

Baidu has steadily integrated generative AI into its ecosystem, supporting tools like cloud storage and content creation. The company’s Wenku platform, which leverages AI for document and presentation generation, reached 40 million paying users by the end of 2024—marking a 60% growth year-over-year.

AI Industry Watch: What’s Next?

Despite reports of an upcoming release, Baidu has not officially confirmed Ernie 5.0’s launch timeline. Meanwhile, in the U.S., OpenAI’s ChatGPT-4o debuted in May 2024, but CEO Sam Altman has yet to reveal a public roadmap for GPT-5.

With AI development intensifying worldwide, Baidu’s next move will be crucial in determining China’s position in the global AI race. Will Ernie 5.0 be a breakthrough—or will new challengers continue to reshape the AI landscape?

(Sources: cnbc.com, ChatGPT)