Baidu Founder Advocates Shift to AI Applications Amid Rising Homegrown Competition

Baidu, Inc BIDU founder Robin Li has urged Chinese entrepreneurs and officials to stop competing in developing large language models and instead focus on creating applications for existing models like Baidu's "Ernie." Despite Li's call, competition has surged, with the number of homegrown models increasing rapidly. 

This rival rise threatens Baidu's ambitions in emerging technologies, a pattern seen over the past decade when the company retreated from various ventures due to intense competition, the Financial Times reports.

Over a dozen current and former Baidu employees have raised concerns about Li's leadership and company culture, contributing to difficulties in developing new business lines. 

Also Read: Baidu's Stock Climbs with China's Economic Boost and Ernie Bot's Rising Popularity

They respect Li's technological advancement efforts and work ethic but criticize the company's lack of product focus and high staff turnover. 

Some employees also mention complications due to Li and his wife Melissa Ma's joint presence at Baidu, with Ma's return to the company causing internal conflicts and contributing to the departure of key personnel.

Despite her modest official designation, Ma's involvement in talent management and recruiting has led to disagreements and affected decision-making. 

Baidu has seen significant executive turnover since 2017, which the company attributes to its empowering culture. 

However, the frequent changes in strategy and focus have hindered Baidu's success in various business ventures, including its intelligent driving unit and electric car development.

The company's shift towards large language models and AI technology, marked by the release of Ernie, comes amidst regulatory challenges and a crowded market. 

Li's focus on Ernie is crucial for Baidu's future, reallocated resources from other projects, including the self-driving car team. 

Despite competition and regulatory pressures, Baidu aims to establish itself as a leading AI company, with Li predicting a consolidation in the industry and a few dominant foundation models emerging.

In 2023, Alibaba Group Holding Limited BABA CEO Eddie Wu emphasized the company's shift towards becoming an "open technology platform," highlighting leveraging AI to innovate across numerous industries.

Price Action: BIDU shares traded lower by 0.07% at $118.24 premarket on the last check Friday.

Also Read: Huawei Outshines Nvidia in Baidu's AI Chip Order Amid U.S. Tech Embargo

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo via Wikimedia Commons