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China's tech company Baidu is preparing to launch its new artificial intelligence model, Ernie 5, in the second half of 2025. This updated version will boast multimodal capabilities that allow it to process and convert various formats such as text, video, images, and audio, as reported by CNBC.

The upcoming Ernie 5 release reflects the escalating competition in China's AI sector, with startup DeepSeek notably challenging industry leaders. Despite being an early player in AI with the launch of ChatGPT in 2022, Baidu has faced challenges in gaining widespread adoption for its Ernie large language model. Baidu's CEO, Robin Li, acknowledged the emergence of DeepSeek as a reminder of the unpredictable nature of innovation during a recent conference in Dubai.

Li also emphasized the continued necessity of investing in data centers and cloud infrastructure, even as DeepSeek poses cost-efficiency challenges for large AI models.