Baidu

Chinese tech giant Baidu makes AI model Ernie open source

This move is expected to put pressure on closed providers like OpenAI and Anthropic to justify high prices and locked-down APIs
Pro

1 July 2025

Chinese tech giant Baidu is set to open source its Ernie generative AI model for the main languages, marking a significant moment in the global AI race. This move follows a strategy of gradual rollout, confirmed by a Baidu spokesperson to US broadcaster CNBC.

While some experts question whether this step will have as much impact as the rise of DeepSeek, it undeniably signals a shift in Baidu’s approach to AI development. Baidu was previously a strong proponent of proprietary models, but has now been influenced by the success of open source platforms like DeepSeek, which have demonstrated the competitiveness and reliability of these models.

Baidu’s decision is being hailed as a catalyst for improving industry standards. Sean Ren, associate professor at the University of Southern California and Samsung AI researcher of the year, said it puts pressure on closed platforms like those of OpenAI and Anthropic to justify their high prices and locked-down APIs.

 

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Open access to powerful models often translates into lower costs, better performance, and broader language support – benefits that stem from the freedom developers and researchers enjoy through open-source platforms. Alec Strasmore, founder of AI consultancy Epic Loot, sees Baidu’s Ernie as a potential game-changer, especially in terms of pricing, comparing it to Costco’s Kirkland brand disrupting high-end markets.

Baidu CEO Robin Li emphasised the need to give developers worldwide access to powerful models without the costs and development hurdles associated with proprietary solutions.

While Baidu’s decision is significant, Cliff Jurkiewicz, vice president of global strategy at Phenom, an AI company focused on human resources, suggests the impact on the US market may be limited due to low brand recognition. He draws a parallel with the early days of Android, highlighting the initial challenges of personalisation and user experience compared to closed platforms like Apple.

The open source movement in AI undoubtedly poses a challenge to established business models. Sam Altman, CEO of OpenAI, has acknowledged the need for a revised approach to open source, which could lead to the release of an open source model this summer. He stressed the importance of fostering development from the US and addressing concerns about data transparency and consent in open source AI.

Despite the potential benefits of open source models, Sean Ren warned against the notion that transparency equals trust. Concerns remain about data provenance, consent, and contributor compensation – issues that are becoming increasingly important as AI enters our lives.

The Chinese origin of Ernie has also raised concerns about data security and privacy. Strasmore points to the potential risks of widespread integration of Baidu’s API in apps, which could give China access to vast amounts of user data.

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