Baidu CEO Emphasizes Continued AI Investment Despite DeepSeek's Cost-Efficient Success

Baidu's Next DeepSeek? Robin Li on AI's Future in China

Baidu CEO plans to scale AI infrastructure to compete with rivals like ByteDance's Doubao Baidu CEO weighs in on the latest DeepSeek debate, claiming that although cheaper models like DeepSeek AI have risen recently, continued investment in AI infrastructure is still needed. Speaking at the World Government Summit in Dubai, Robin Li emphasized that cloud computing and data center expansion should be a priority. "The investment in cloud infrastructure is still very much required. To come up with models that are smarter than everyone else, you have to use more computing," said Li while sharing his thoughts with the attendees.

Baidu CEO says more AI spend still needed despite DeepSeek's success

BEIJING (Reuters) - Investment in data centres and cloud infrastructure is still needed despite DeepSeek challenging the cost efficiency of large AI models, Baidu CEO Robin Li said on Tuesday. "The investment in cloud infrastructure is still very much required. In order to come up with models that are smarter than everyone else, you have to use more compute," Li told attendees at the World Government Summit in Dubai. Compute refers to the hardware resources that make AI models work, allowing them to train on data, process information, and generate predictions. Li's comments come as Chinese AI startup DeepSeek has gained global attention for developing language models that match the performance of leading systems like OpenAI's GPT while using significantly less computing power, raising questions about the necessity of massive AI infrastructure spending. Baidu was among the first Chinese companies to launch AI products following OpenAI's ChatGPT release in late 2022. However, its large language model Ernie, which Baidu claims matches GPT-4's capabilities, has seen limited public adoption. Li has made bold claims about China's AI landscape in the past, including saying that it was unlikely that another OpenAI-like company would emerge from China. He had also advocated for closed-source models as the only viable path for AI development. At Tuesday's summit, Li acknowledged that DeepSeek's sudden emergence demonstrated the unpredictable nature of innovation. "You just don't know when and where innovations come from," he said. Li added that U.S. chip sanctions have forced Chinese companies to innovate within computing constraints. He also appeared to soften his stance on closed-source development, now acknowledging that open-source approaches could accelerate AI adoption. "If you open things up, a lot of people will be curious enough to try it. This will help spread the technology much faster." (Reporting by Liam Mo and Brenda Goh; Editing by Michael Perry)

DeepSeek's Success Just The Start, More AI Funding 'Still Very Much Required,' Says Baidu CEO: 'You Just Don't Know When And Where Innovations Come From' Baidu CEO Robin Li Stresses On Persistent AI Investment Despite DeepSeek's Cost Efficiency. Admits Op - Alibaba Gr Hldgs (NYSE:BABA), Baidu (NASDAQ:BIDU)

Baidu BIDU CEO Robin Li underscored the significance of ongoing investment in data centers and cloud infrastructure. This emphasis comes despite the cost-effectiveness of AI models like DeepSeek. What Happened: At the World Government Summit in Dubai, Li highlighted the need for more investment to develop smarter models, reported Reuters. This statement comes amid the recognition of DeepSeek for creating language models that achieve performance comparable to top systems like OpenAI's GPT while requiring significantly less computing power. "The investment in cloud infrastructure is still very much required. In order to come up with models that are smarter than everyone else, you have to use more compute." Baidu was among the first Chinese companies to launch AI products after OpenAI released ChatGPT in late 2022. However, its large language model, Ernie -- which Baidu claims is on par with GPT-4 -- has struggled to witness widespread public adoption. Li, recognized for his outspoken views on China's AI industry, noted that U.S. chip sanctions have driven Chinese companies to innovate despite computing limitations. He also appeared to take a more flexible stance admitting that open-source methods could speed up AI adoption. "You just don't know when and where innovations come from," he said. SEE ALSO: OpenAI's ChatGPT Surpasses Elon Musk's X To Rank Sixth Most-Visited Website Globally -- Sam Altman Says, 'Still A Long Way To Go To Run Down Google' Why It Matters: Baidu is emerging as a significant rival in the AI sector, posing a challenge to giants like Google GOOGL GOOG. The limited public adoption of its AI model, Earnie indicates a potential area of growth and investment. In an internal memo to the staff on the company's 25th anniversary in January, Li stated, "While there's been no 'super app' so far, the penetration ratio of AI is not low and we'll keep seeing exponential growth in 2025," reported the South China Morning Post. As the company pushes for AI adoption in the industrial space, Li acknowledged the associated risks in the memo. Earlier, in January, CNBC's Jim Cramer speculated about Baidu being the next Chinese tech giant to gain market attention. This speculation followed Alibaba's BABA AI model outperforming DeepSeek in several benchmarks, leading to a surge in Alibaba's shares. Baidu stock price has surged over 10% in the past six months to close at $93.85 yesterday. READ MORE: Data On DeepSeek May 'Be Somehow Weaponized Against The United States' - Suze Orman Says The AI App Faces Similar Fate As TikTok Image via Shutterstock Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. BABAAlibaba Group Holding Ltd$108.30-2.71%Overview Rating:Speculative50%Technicals Analysis660100Financials Analysis400100WatchlistOverviewBIDUBaidu Inc$91.49-2.51%GOOGAlphabet Inc$187.75-0.24%GOOGLAlphabet Inc$185.89-0.31%Market News and Data brought to you by Benzinga APIs

Baidu CEO Claims More AI Spend Is Needed as US Giants Prepare To Spend $300B in 2025

In 2025, Microsoft, Meta, Amazon and Google are expected to spend over $300 billion on AI infrastructure. Robin Li, CEO of Chinese technology giant Baidu, has claimed that more investment in cloud infrastructure and data centers is needed for AI development despite the recent cost-efficient success of China-based DeepSeek. The comments come as leading U.S. AI giants are ramping up for another expensive year of development, with forecasts estimating a combined spend of over $300 billion. More AI Spend Needed Talking on Tuesday, Feb. 11, at the World Government Summit in Dubai, Li said that more money was needed to create competitive AI models. "The investment in cloud infrastructure is still very much required. In order to come up with models that are smarter than everyone else, you have to use more compute," Li stated. Baidu has been a key player in China's AI race as it became one of the first Chinese companies to launch rival AI products to OpenAI's ChatGPT. The release of the DeepSeek-R1 chatbot in January sent shockwaves through the U.S. market, casting doubt over the dominance of leading U.S. firms that have been investing billions of dollars into training and development. DeepSeek's V3 model was reportedly trained on just $6 million. This was a significantly smaller budget than that of companies such as OpenAI, which is estimated to have spent over $100 million on its GPT-4 model. Despite the disparity in funding, DeepSeek has demonstrated that smaller-scale investments can yield impressive results, challenging the notion that only the most prominent players with the deepest pockets can develop cutting-edge AI systems. For many, DeepSeek's success has underscored a shift in the AI landscape, where efficiency and innovation in training methodologies may begin to rival sheer computational power and financial backing. If this trend continues, it could force major players to rethink their strategies and optimize their spending. Big Tech Remains Spending Focused Over the past few years, Big Tech has been increasing its spending on AI development to astronomical levels. Last year marked a historical record of spending on technology, with the four leading technology companies increasing their output by 63%. Microsoft, Alphabet, Amazon and Meta have reported combined spending of $246 billion in 2024, a significant increase from $151 billion in 2023. In 2025, the tech giants forecast they will spend $320 billion, as the race continues to build data centers and compute, the Financial Times reported.

Google AI Head: Reports of DeepSeek's Low Costs Are 'Misleading' | PYMNTS.com

Demis Hassabis, Google's artificial intelligence (AI) chief, says he isn't so sure, Bloomberg News reported Monday (Feb. 10). In an interview with Bloomberg Television, Hassabis, who leads Google's DeepMind, called the idea that the Chinese startup spent so little to develop an AI system that rivals American tech giants "exaggerated and a little bit misleading." DeepSeek rocked the tech world last month when it unveiled a chatbot and AI model that it said it developed spending far less than companies like OpenAI. The launch caused many tech stocks to tumble, wiping out nearly $1 trillion in market value. Gokul Naidu, a consultant for SAP, told PYMNTS last month that DeepSeek "challenges the narrative that innovation must come at an unsustainable cost." "For businesses, this means AI could soon be accessible to small and medium enterprises, not just tech giants with deep pockets," Naidu added. But Hassabis, interviewed at the Artificial Intelligence Action Summit in Paris, argued that DeepSeek "seems to have only reported the cost of the final training round, which is a fraction of the total cost." He also dismissed the notion that the rise of DeepSeek has shaken up the economics of artificial intelligence development. "We don't see any new silver bullet technologies," Hassabis said. "DeepSeek is not an outlier on the efficiency curve." His comments come at a time when, as PYMNTS wrote last week, the "AI arms race is getting pricey," with Google, Meta Microsoft and Amazon planning to collectively spend at least $320 billion on capital expenditures in 2025, the bulk of it for AI. Meta's budget for capital expenditures could reach as high as $65 billion, while Google has set aside $75 billion, primarily for data centers, servers and networking infrastructure. Amazon projects it will spend $100 billion, while Microsoft is booking $80 billion to construct data centers, train AI models and launch AI and cloud-based applications. Microsoft President Brad Smith wrote on the company's blog last month that "artificial intelligence is the electricity of our age," setting up the next industrial revolution. "However, AI requires hefty investments," PYMNTS wrote. "Training large language models uses thousands of GPUs (each Nvidia GPU costs about $10,000 or more) or specialized AI chips for a total of tens or hundreds of millions of dollars. Running these AI models at scale also requires high-performance data centers, which need more servers and require more cooling and maintenance."

Google AI chief says DeepSeek's cost claims are 'exaggerated'

The executive also shot down the idea that DeepSeek's emergence upends the economics of AI development. "We don't see any new silver bullet technologies," Hassabis said on Monday, in Paris, at the Artificial Intelligence Action Summit. "DeepSeek is not an outlier on the efficiency curve."The notion that China's DeepSeek spent under $6 million to develop its artificial intelligence system is "exaggerated and a little bit misleading," according Google DeepMind boss Demis Hassabis. Last month, DeepSeek shocked the world by releasing a popular chatbot and AI model using far less money than US rivals, such as DeepMind and OpenAI. Hassabis, who runs the AI unit of Alphabet Inc.'s Google, told Bloomberg Television that DeepSeek "seems to have only reported the cost of the final training round, which is a fraction of the total cost." The executive also shot down the idea that DeepSeek's emergence upends the economics of AI development. "We don't see any new silver bullet technologies," Hassabis said on Monday, in Paris, at the Artificial Intelligence Action Summit. "DeepSeek is not an outlier on the efficiency curve." The Chinese startup reported spending $5.6 million on computing costs to train its model using older Nvidia Corp. chips. Several researchers have questioned those claims. US authorities opened a probe to see if DeepSeek circumvented a chip ban by purchasing through Singapore. Bloomberg News reported earlier that OpenAI and Microsoft Corp. are investigating whether a group tied to DeepSeek obtained data from OpenAI using a process known as distillation, where one AI model pilfers outputs from another for training purposes. Hassabis said DeepSeek seems "to have relied on some Western models to distill from," without offering specifics. A representative for DeepSeek didn't immediately respond to a request for comment. Alphabet is one of several Silicon Valley giants that stuck with major spending plans after DeepSeek caused turmoil in public markets. Last week, Alphabet reported plans for $75 billion in capital expenditures in 2025. That money will go to its cloud-computing division and services like Gemini, an AI model Google is weaving into search and other products. "Gemini is more efficient than DeepSeek in terms of its training to performance or cost to performance," Hassabis said. "We just don't talk about it very much."

Google AI Chief Says DeepSeek's Cost Claims Are 'Exaggerated'

(Bloomberg) -- The notion that China's DeepSeek spent under $6 million to develop its artificial intelligence system is "exaggerated and a little bit misleading," according Google DeepMind boss Demis Hassabis. Last month, DeepSeek shocked the world by releasing a popular chatbot and AI model using far less money than US rivals, such as DeepMind and OpenAI. Hassabis, who runs the AI unit of Alphabet Inc.'s Google, told Bloomberg Television that DeepSeek "seems to have only reported the cost of the final training round, which is a fraction of the total cost." The executive also shot down the idea that DeepSeek's emergence upends the economics of AI development. "We don't see any new silver bullet technologies," Hassabis said on Monday, in Paris, at the Artificial Intelligence Action Summit. "DeepSeek is not an outlier on the efficiency curve." The Chinese startup reported spending $5.6 million on computing costs to train its model using older Nvidia Corp. chips. Several researchers have questioned those claims. US authorities opened a probe to see if DeepSeek circumvented a chip ban by purchasing through Singapore. Bloomberg News reported earlier that OpenAI and Microsoft Corp. are investigating whether a group tied to DeepSeek obtained data from OpenAI using a process known as distillation, where one AI model pilfers outputs from another for training purposes. Hassabis said DeepSeek seems "to have relied on some Western models to distill from," without offering specifics. A representative for DeepSeek didn't immediately respond to a request for comment. Alphabet is one of several Silicon Valley giants that stuck with major spending plans after DeepSeek caused turmoil in public markets. Last week, Alphabet reported plans for $75 billion in capital expenditures in 2025. That money will go to its cloud-computing division and services like Gemini, an AI model Google is weaving into search and other products. "Gemini is more efficient than DeepSeek in terms of its training to performance or cost to performance," Hassabis said. "We just don't talk about it very much."

Google DeepMind's CEO said DeepSeek is 'impressive' but nothing new

Donald Trump wants a sovereign wealth fund. Here are the risks and rewards, according to a strategist Google DeepMind chief executive Demis Hassabis said the Hangzhou-based startup's AI model "is probably the best work" from China, and is "an impressive piece of work," during a Google event in Paris, CNBC reported. Hassabis said DeepSeek has demonstrated "extremely good engineering," and that its AI models have deeper geopolitical implications. However, Hassabis said DeepSeek doesn't show "actual new scientific advance" and is "using known techniques" in the AI industry. He added that the reaction to DeepSeek was "exaggerated a little bit." Last month, DeepSeek released results for its latest open-source reasoning models, DeepSeek-R1, which performed comparably to OpenAI's reasoning models, o1-mini and o1, on several industry benchmarks. In December, the startup launched its DeepSeek-V3 models which it said cost just $5.6 million to train and develop on Nvidia's (NVDA+3.68%) H800 chips -- the reduced-capability version of Nvidia's H100 chips used by U.S. firms. The release of DeepSeek-R1 sparked a global sell-off of tech stocks, sending Nasdaq, Dow Jones Industrial Average, and S&P500 futures falling. Nvidia's stock plunged 17%, wiping out nearly $600 billion in value -- a record loss for a U.S. company. DeepSeek's cheaper-yet-competitive models have raised questions over Big Tech's big spending on AI infrastructure, as well as how effective U.S. chip export controls are. Meanwhile, Google made its Gemini 2.0 Flash Thinking Experimental AI model available to all Gemini app users last week. The AI model currently ranks as the best model in the world on the community-driven Chatbot Arena. Gemini 2.0 Flash Thinking Experimental is trained to "strengthen its reasoning capabilities" by breaking down prompts step-by-step and showing users its "thought process" to understand how it came to its response. Through this process, users can see "what its assumptions were, and trace the model's line of reasoning," Google said.

Google DeepMind CEO Calls DeepSeek AI 'Best Work' From China, But Says Hype Is Overblown: 'There's No Actual New Scientific Advance' DeepSeek AI Model Hype 'Exaggerated' Despite Being The 'Best Work' From China, Said Google Deepmind CEO. 'There's no actua - Alphabet (NASDAQ:GOOG), Alphabet (NASDAQ:GOOGL)

Google Deepmind CEO, Demis Hassabis, commended that DeepSeek's AI model is "probably the best work" to have surfaced from China. Despite praising the model, Hassabis clarified that it did not constitute a significant technological breakthrough. What Happened: At a Google-hosted event in Paris preceding the AI Action Summit, DeepMind CEO, Demis Hassabis expressed that the DeepSeek AI can do "extremely good engineering" and that it "changes things on a geopolitical scale.", CNBC reported. However, Hassabis added that "despite the hype, there's no actual new scientific advance ... it's using known techniques [in AI]." According to him, the hype around Deepseek has been "exaggerated a little bit." Hassabis questioned DeepSeek's claims regarding its low costs and the chips it utilizes. DeepSeek had earlier proclaimed that its AI model was developed at a fraction of the cost of leading AI players and utilized less advanced Nvidia chips. This revelation triggered a substantial stock sell-off and ignited a discussion over the high spending of large tech firms on AI infrastructure. Regarding artificial general intelligence (AGI), Hassabis stated that the AI industry is "on the path towards AGI," and suggested that we may be only around five years away from a system that exhibits all the cognitive capabilities humans have. SEE ALSO: Google Expands Collaboration With Associated Press To Deliver Up-To-Date Information In Gemini AI App Why It Matters: Hassabis' comments align with Alphabet Inc. GOOG GOOGL CEO Sundar Pichai who acknowledged the progress made by DeepSeek but maintained that Google's Gemini remains superior in efficiency, cost, and performance. Hassabis also considers Google's newly launched Gemini 2.0 Flash Models as more efficient than even Deepmind's model. In another instance, ex-Google researcher and CEO of Cohere, Aidan Gomez told Business Insider that DeepSeek's R1 is "a really impressive release". However, he doesn't believe that it should be a viable option for businesses. Interestingly, Chinese tech companies are witnessing a surge after the DeepSeek launch which gaining an edge over its US tech counterparts in terms of valuation. On Feb.6, Bloomberg Data suggested that the Hang Seng Tech Index had an average price-to-earnings ratio of 20.5 times, compared to the Mag. 7 giants that traded at an average of 41.4 times. READ MORE: China Tech ETFs Surge As DeepSeek-Led AI Boom Fuels Bull Market Image via Shutterstock Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. GOOGAlphabet Inc$188.310.63%Overview Rating:Good62.5%Technicals Analysis1000100Financials Analysis400100WatchlistOverviewGOOGLAlphabet Inc$186.350.54%MSFTMicrosoft Corp$412.200.60%NVDANVIDIA Corp$130.040.15%TSLATesla Inc$357.11-1.25%Market News and Data brought to you by Benzinga APIs

Deepseek's AI model is 'the best work' out of China but the hype is 'exaggerated,' Google Deepmind CEO says

PARIS -- Deepseek's AI model "is probably the best work" out of China, Demis Hassabis, the CEO of Google DeepMind said on Sunday, but added that the company didn't show any new scientific advances. Last month, China's Deepseek released a research paper that rattled global markets after claiming its AI model was trained at a fraction of the cost of leading AI players and on less-advanced Nvidia chips. Deepseek's announcement sparked an aggressive stock sell-off and sparked considerable debate over whether large tech firms are spending too much on AI infrastructure. Hassabis praised Deepseek's model as "an impressive piece of work."

Google AI Chief Says DeepSeek's Cost Claims Are 'Exaggerated'

The notion that China's DeepSeek spent under $6 million to develop its artificial intelligence system is "exaggerated and a little bit misleading," according Google DeepMind boss Demis Hassabis. Last month, DeepSeek shocked the world by releasing a popular chatbot and AI model using far less money than US rivals, such as DeepMind and OpenAI. Hassabis, who runs the AI unit of Alphabet Inc.'s Google, told Bloomberg Television that DeepSeek "seems to have only reported the cost of the final training round, which is a fraction of the total cost."

Google DeepMind CEO says DeepSeek's AI model is 'best work' from China, but hype is 'exaggerated'

Google DeepMind CEO Demis Hassabis praised DeepSeek, stating that its AI model "is probably the best work" to come out of China. But he added that the company has not shown any recent scientific advancements. Hassabis' statement follows the release of a research paper by the Chinese company, which claims that its AI model was trained at a fraction of the cost incurred by several leading AI companies and without the use of highly advanced Nvidia chips, CNBC reported. This ultimately led to an aggressive stock sell-off, leaving global markets unsettled. Speaking at a Google event in Paris, which is set to host the AI Action Summit, Demis Hassabis praised DeepSeek's AI model, calling it an "impressive piece of work." "I think it's probably the best work I've seen come out of China," CNBC quoted Hassabis as saying. However, he noted that DeepSeek has not introduced any major technological breakthroughs but shown "extremely good engineering." Also Read : Two winter storms to hit US this week, bringing heavy snow and Arctic cold Hassabis also highlighted its broader impact, stating that it has changed "things on a geopolitical scale." The Google DeepMind CEO feels DeepSeek is only using known techniques in the world of artificial intelligence. As such, the hype around it is "exaggerated a little bit." "Despite the hype, there's no actual new scientific advance. It's using known techniques (in AI)," he said. Also, he claimed that the Gemini 2.0 Flash models, which were unveiled by Google recently, were more efficient than the AI model of DeepSeek. On being asked about artificial general intelligence (AGI), Hassabis said the AI sector remains "on the path towards AGI". Hassabis described AGI as a system capable of demonstrating all the cognitive abilities that humans possess. He suggested that such a breakthrough could be just five years away, marking an extraordinary milestone in artificial intelligence. Also Read : Can Elon Musk's DOGE order a nuclear strike by the US? The answer is not yet He stressed the importance of society being prepared for its arrival and the wide-ranging implications it may have. Hassabis highlighted the need to ensure that AGI's benefits are accessible to all while also taking proactive steps to mitigate potential risks. 1. When is AI Action Summit? France is all set to hold the Artificial Intelligence (AI) Action Summit at the Grand Palais on February 10 and 11. 2. Who is Demis Hassabis? Hassabis serves as the co-founder and CEO of Google DeepMind, a leading AI research groups that has produced several researches like AlphaGo and AlphaFold.