DeepSeek spurs AI competition among China's tech giants

A new AI model from Chinese startup DeepSeek is shaking up the technology industry in China. Launched in January, DeepSeek's model performs as well as global leaders like ChatGPT but costs much less. This has prompted major companies such as Baidu, Tencent, and Alibaba to accelerate their own AI efforts. Alibaba has announced a significant investment of $52 billion over the next three years to expand its AI and cloud computing initiatives. They have also introduced a new version of their AI assistant app, which uses their open-source Qwen reasoning model. Baidu responded by unveiling its latest AI models, the X1 and Ernie 4.5. They claim that Ernie 4.5 performs better than OpenAI's GPT-4.5 on various benchmarks. Baidu also stated that X1 competes with DeepSeek's model while being more cost-effective. Tencent is also getting in on the action. In February, they launched a new AI model that promises to be quicker in response time compared to DeepSeek's model. Tencent has integrated DeepSeek's technology into its popular messaging app, WeChat. DeepSeek's model is already being used by several businesses and government agencies in China. Baidu plans to open-source its Ernie models, following DeepSeek's lead. This rapid evolution is making China's AI market more competitive, as both startups and established companies strive to keep up with each other.