Baidu's struggle to keep up with competitors, their 'do-or-die' bet on AI, the use of Ernie in their AI projects, the reception and challenges of Baidu's AI project in China, and the future of their AI bet
Baidu's bet on artificial intelligence, particularly its AI chatbot Ernie, is seen as a potential turning point for the company's growth.
Baidu's challenge lies in creating an ecosystem and ensuring commercial success by building apps on top of Ernie's foundational model.
Deep dives
Baidu's CEO discourages competition and focuses on AI
The podcast episode discusses Robin Lee, the CEO of Baidu, and his message to other entrepreneurs at a conference in Beijing. Lee advises them not to compete with Baidu and instead build apps for Baidu's AI technology. The podcast explains that Baidu had previously struggled to grow its revenues compared to its Chinese tech counterparts Alibaba and Tencent. The discussion highlights Baidu's bet on artificial intelligence, particularly its AI chatbot called Erniebot, as a potential turning point for the company's growth. However, concerns are raised about Lee's leadership and the dysfunction within the company, including the involvement of Lee's wife, Melissa Ma. The podcast examines Baidu's past failures in diversification and the challenges they face in commercializing their AI technology.
Baidu's challenges and focus on AI dominance in China
The podcast explores how Baidu has struggled to maintain its dominance in search due to changes in China's internet ecosystem. WeChat, with its embedded search function, became a strong competitor. As a result, Baidu attempted diversification into various businesses, but most failed to bring successful growth. The podcast also highlights the rising significance of Robin Lee's bet on AI and Ernie, Baidu's AI chatbot. However, it is noted that despite Lee's efforts to discourage competition, many Chinese companies are developing their own large language models. Baidu's challenge lies in creating an ecosystem and ensuring commercial success by building apps on top of Ernie's foundational model.
The future of Baidu and the potential impact of AI
The podcast examines whether Robin Lee's focus on AI can revive Baidu's growth or whether the company will continue to struggle. It describes how Baidu hopes that Ernie, their AI technology, will lead to the next decade of growth for the company. However, concerns are raised about Lee's ability to commercialize and monetize products successfully. Analysts predict that the next few years will reveal which companies will dominate foundational models, and Baidu aims to be among them. However, some experts express doubts about Baidu's ability to achieve this. The podcast suggests that if Baidu fails to make AI work, it may be increasingly left out of China's tech ecosystem, potentially impacting its position as a leading tech company.
Baidu made it big as China’s go-to search engine. But in the past decade the tech giant has struggled, while competitors such as Alibaba and Tencent have soared ahead. The FT’s China tech correspondent Ryan McMorrow looks at chief executive Robin Li’s latest venture, in artificial intelligence, and whether this will be enough to turn the company around.
