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Baidu adopts DeepSeek AI models, chasing Tencent in race to embrace the hot start

Baidu has integrated DeepSeek's AI models and its own Ernie models into its search engine, following Tencent's adoption of DeepSeek's technology in WeChat. Baidu aims to enhance its search experience and expand its LLM platform for developers. Tencent tested DeepSeek-R1 with some users, potentially reaching 1.3 billion users, though limited to mainland China. Baidu's stock dropped 8% in Hong Kong, its sharpest fall since November. The rise of DeepSeek's cost-effective models may challenge Nvidia's chip dominance, as the Hangzhou-based startup gained global attention, impacting Wall Street.
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