It looks like Baidu is flipping the script on AI development. The Chinese tech giant, once a firm believer in closed-source AI, is now planning to open-source its next-gen Ernie model starting June 30. Why the sudden change of heart? Competition.

Why Baidu Is Going Open-Source

For a long time, Baidu CEO Robin Li was all about keeping AI closed and proprietary, arguing that it was the only way forward. But then DeepSeek showed up, offering open-source AI models that claim to rival OpenAI's tech—only at a lower cost. That changed the game, forcing Baidu to rethink its strategy.

Now, in a bid to win more users and expand market share, Baidu is:

Looks like Baidu wants to get as many people using Ernie as possible—and fast.

The AI Race in China: Who's Winning?

Despite its early AI investments, Baidu's Ernie Bot hasn't exactly taken off. Here's how it stacks up in China's chatbot market:

Ouch. That's a huge gap between Baidu and its rivals. So, by going open-source, Baidu hopes to spark curiosity, boost adoption, and speed up AI innovation—at least, that's what CEO Robin Li hinted at during a recent event in Dubai. "If you open things up, a lot of people will be curious enough to try it. This will help spread the technology much faster," Li said.

What's Next for Ernie AI?

Baidu isn't stopping at Ernie 4.5—there's already talk of Ernie 5, set to launch in the second half of 2025. If Baidu can successfully leverage the open-source community while improving Ernie's capabilities, it might just close the gap with OpenAI and ByteDance.

Final Thoughts: Smart Move or Desperate Pivot?

By going open-source, Baidu is betting that transparency and accessibility will help Ernie become more widely used. But will it be enough to compete with ByteDance and DeepSeek? Or is this just a last-ditch effort to stay relevant in the AI race?

One thing's for sure—the AI competition in China is heating up, and the days of closed-source dominance might be numbered.

What do you think—smart strategy or too little, too late?