Alibaba (BABA) Faces Heat as Baidu Open-Sources Ernie AI Model

Alibaba Group Holding Limited (NYSE:BABA) is one of the 13 best blue-chip stocks to buy, according to analysts. On June 30, Alibaba (NYSE: BABA) shares slipped 1.4% premarket after Baidu announced it would open-source its Ernie AI model—introducing new pressure in China’s fast-moving AI race. While Alibaba has its own open-source Qwen model, Baidu’s move is seen as a bold step that could speed up AI development across the country.

Alibaba (BABA) Faces Heat as Baidu Open-Sources Ernie AI Model

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Industry analysts warn this shift may challenge Alibaba’s competitive edge, forcing it to ramp up AI efforts to keep pace. With Chinese tech firms racing to dominate generative AI, Baidu’s decision could reshape market dynamics and intensify the rivalry among leading players.

Alibaba Group Holding Limited (NYSE:BABA) is a leading global technology company that delivers infrastructure and marketing platforms across a diverse business portfolio, operating through seven key segments: China Commerce, International Commerce, Local Consumer Services, Cainiao (logistics), Cloud Computing, Digital Media & Entertainment, and Innovation Initiatives & Others.

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