Alibaba stock falls as Baidu announces open source Ernie AI model

Published 30/06/2025, 13:51
Updated 01/07/2025, 14:31
© Reuters.

Investing.com -- Alibaba Group Holdings Ltd ADR (NYSE:BABA) stock fell 1.4% premarket Monday following news that Chinese search giant Baidu (NASDAQ:BIDU) announced that its Ernie generative AI large language model will be open source, as reported by CNBC.

The move by Baidu represents a potential competitive challenge in China’s rapidly evolving AI landscape, where Alibaba has been working to strengthen its own AI capabilities with its open source Qwen model.

Industry observers note this could be China’s most significant development in the global AI race since the emergence of DeepSeek, another Chinese AI model. The decision to make Ernie open source potentially creates new competitive dynamics among Chinese tech giants like Alibaba that are investing heavily in artificial intelligence technologies.

Baidu’s move could also pose a threat to international AI leaders such as OpenAI and Anthropic, as it makes advanced Chinese AI technology more widely accessible to developers and businesses globally.

Alibaba, which has been developing its own AI models and applications, may face increased pressure as Baidu’s open-source strategy could accelerate AI innovation and adoption across the Chinese technology sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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