Baidu is integrating DeepSeek AI into its tech, following the same development as its rival, Tencent. The move is coming after Tencent announced the integration of the AI model into its Weixin app, an application that operates as a chat messenger.
Baidu announced on Sunday, mentioning that it will integrate the AI model into its Ernie AI model as it moves to refine its search engine results with AI capabilities. The recent development has shown the increased attention DeepSeek is getting, with the company gaining attention as a result of its newly released models.
Baidu stock plummets after DeepSeek integration announcement
After the announcement, Baidu saw its stock decline, losing 8% in its afternoon session on Monday. The drop signifies the company’s largest one-day drop since November 2024. The company will also intimate investors of its financial standing as the AI integration war deepens.
DeepSeek’s expansion has seen a massive amount of companies push for the integration of its model over the weekend, with public systems in several cities also taking the same approach. According to a recent Baidu announcement, a new version of its Ernie AI model is set to be released on June 30, with the public free to use the bot beginning from April.
The expansive AI competition in the Chinese market has pushed for most companies to adopt a collaborative approach in the industry. With DeepSeek using the open-source model, there is still a likelihood of firms choosing to go through the same route with their products.