Alibaba Group Holdings Ltd ADR (NYSE: BABA) saw its stock slip 1.4% in premarket trading on Monday following the announcement by Chinese tech giant Baidu (NASDAQ: BIDU) that it will make its Ernie generative AI large language model open source, CNBC reported.
This strategic move by Baidu introduces a fresh layer of competition in China’s fast-moving AI market, where Alibaba has been actively developing its own AI capabilities, notably through its open source Qwen model.
Experts highlight that Baidu’s decision marks one of the most notable developments in the global AI arena coming out of China since the launch of DeepSeek, another homegrown AI platform. By opening up Ernie, Baidu is likely to reshape the competitive landscape among leading Chinese technology firms, including Alibaba, which continue to invest heavily in artificial intelligence.
The move also carries implications beyond China, potentially challenging global AI frontrunners such as OpenAI and Anthropic by broadening access to advanced Chinese AI tools for developers and enterprises worldwide.
For Alibaba, which is racing to expand its AI offerings, Baidu’s open source initiative may intensify competitive pressures and accelerate innovation across the sector.