Baidu co-founder and CEO Robin Li has acknowledged a significant lesson from the emergence of DeepSeek, highlighting the benefits of open-sourcing AI models. This marks a shift in Li's stance, who previously believed that closed-source models were essential for profitability. The revelation comes amid Baidu's financial report for the October-December quarter, revealing a revenue of 34.1 billion yuan, equivalent to $4.7 billion. This figure represents a 2% decrease from the previous year but slightly surpasses analyst expectations.
Robin Li, a tech billionaire at the helm of Baidu, noted the impact of DeepSeek's approach on his perspective regarding AI model development and distribution.
"One thing we learned from DeepSeek is that open-sourcing the best models can greatly help adoption," – Robin Li
This insight contrasts with his earlier insistence on maintaining closed-source models as a means to secure profits. DeepSeek's strategy of open-sourcing has evidently influenced Li to reconsider this stance.
Baidu's revenue report reflects a challenging period for the company, with a slight decrease compared to the same timeframe in the previous year. Despite this decline, the revenue managed to exceed analyst predictions, demonstrating some resilience in the face of industry pressures. The financial results were detailed in a report published by the AP news agency, featured in its Hong Kong edition on February 18, 2025, and updated on February 19, 2025.
The strategic shift towards open-sourcing AI models could signal a new direction for Baidu as it seeks to enhance its market presence and drive adoption. By leveraging the lessons from DeepSeek, Baidu may be positioning itself to better navigate the competitive landscape of artificial intelligence.
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