Technology

Baidu, once China’s generative AI leader, is battling to regain its position

Published

2 months ago

March 18, 2025

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Pictured here is the Ernie bot mobile interface, with the Baidu search engine home page in the background.

Future Publishing | Future Publishing | Getty Images

Chinese tech giant Baidu has released two new free-to-use artificial intelligence models as it vies to regain its leading position in the country’s fiercely competitive AI space.

The Baidu models launched Sunday included the company’s first reasoning-focused model, and come ahead of plans to move toward an open-source strategy.

However, experts told CNBC that while the release of the models is a positive development for Baidu, they also highlight how it is playing catch up as its Ernie bot — one of China’s earliest versions of a ChatGPT-like chatbot — struggles to gain widespread adoption.

“The new models make Baidu more competitive since the company has been lagging behind in a reasoning model release,” Lian Jye Su, chief analyst at Omdia, told CNBC.

A reasoning model is a large language model that breaks down tasks into smaller pieces and considers multiple approaches before generating a response. It is designed to process complex problems in a similar way to humans.

Chinese startup DeepSeek upended the global AI race and transformed China’s ecosystem in January when it released its R1 reasoning model, which rivaled American competitors despite costing a fraction of the price.

Baidu has said its new ERNIE X1 reasoning model “delivers performance on par with DeepSeek R1 at only half the price,” and has “stronger understanding, planning, reflection, and evolution capabilities.” CNBC has not been able to independently verify this claim.

According to Wei Sun, principal analyst of artificial intelligence at Counterpoint Research, Baidu’s future competitiveness could hinge on whether its new models deliver on the promised performance and cost advantages.

“Baidu is clearly in catch-up mode, largely due to its slow innovation pace and underestimating rapid shifts in market dynamics,” Sun said.

What happened?

Baidu rolled out its first generative AI platform to the public in 2023, giving China one of its first answers to OpenAI’s popular AI chatbot ChatGPT.

However, despite initial momentum, Baidu’s Ernie product has since been eclipsed by competitors including startups as well as large-tech companies such as Alibaba and ByteDance.

Experts list a number of reasons for Baidu’s struggles and slow rate of innovation.

“Baidu fell behind when they tried to build proprietary models and compete for funding for AI,” Ray Wang, principal analyst and founder of Constellation Research, told CNBC. He added that the company has also suffered from recent government crackdowns and was distracted by “regulatory nonsense.”

CFOTO | Future Publishing | Getty Images

Proprietary models keep their source code and underlying architecture confidential, in contrast to models from the likes of DeepSeek, whose source code is made freely available on the open web for possible modification and redistribution.

“Using a closed-source approach means that [Baidu] was training its model from scratch whereas the open-source models were able to leverage certain parts that were communal to developers,” said Kai Wang, a senior equity analyst for Morningstar.

Baidu, however, said last month that it would make its next-generation AI model Ernie open-source from June 30, according to Reuters.

“Baidu has always been very supportive of its proprietary business model and was vocal against open source, but disruptors like DeepSeek have proven that open source models can be as competitive,” said Omdia’s Su.

He added that Baidu is “merely following the footstep” of its biggest competitors in China, namely Alibaba, DeepSeek, and Tencent, which have all now released open-source models.

Baidu’s advantages

According to Morningstar’s Wang, AI players like Baidu are coming up with new models every month or so, with competitors constantly trying to outperform each advancement.

However, “the differentiator in the Chinese models remains the data used for the models, and the application use-case,” Wang said.

In these areas, experts see some key advantages for Baidu, which operates a wide range of popular applications and services, including its flagship search engine, which offers access to AI tools, as well as its online forum app, Baidu Tieba.

“Due to its large user base in the consumer space, particularly in AI search and recommendation systems, the company can still maintain its market leadership position as long as it keeps up with the innovation cycle,” said Omdia’s Su.

During an earnings call late last year, Baidu CEO Robin Li said he expects generative AI to turn Baidu search into the “new killer app in the age of AI.”

“The secret to AI is data, chips, good math, and cheap energy … You have to have data to play. They have the data,” said Constellation Research’s Wang.

Correction: This article has been updated to state that Baidu’s new AI models are free to use.

Technology

Amazon adds pet prescriptions to its online pharmacy

Published

3 hours ago

May 8, 2025

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Amazon adds pet prescriptions to its online pharmacy

Close-up of a hand holding a cellphone displaying the Amazon Pharmacy system, Lafayette, California, September 15, 2021.

Smith Collection | Gado | Getty Images

Amazon is expanding its online pharmacy to fill prescription pet medications, the company announced Thursday.

The company said it has added “hundreds of commonly prescribed pet medications” to its U.S. site, ranging from flea and tick solutions to treatments for chronic conditions.

Prescriptions are purchased via Amazon’s storefront and must be approved by a veterinarian. Online pet pharmacy Vetsource will oversee the dispensing and delivery of medications, said Amazon, adding that items are typically delivered within two to six days.

Amazon launched its digital drugstore in 2020 with the added perk of discounts and free delivery for Prime members. The company has been working to speed up prescription shipments over the past year, bringing same-day delivery to a handful of U.S. cities. Last October, Amazon set a goal to make speedy medicine delivery available in nearly half of the U.S. in 2025.

The new pet medication offerings puts Amazon into more direct competition with online pet pharmacy Chewy, as well as Walmart, which offers pet prescription delivery.

Amazon Pharmacy is part of the company’s growing stable of healthcare offerings, which also includes One Medical, the primary care provider it acquired for roughly $3.9 billion in July 2022. Amazon’s online pharmacy was born out of the company’s 2018 acquisition of online pharmacy PillPack.

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Technology

Coinbase acquires crypto derivatives exchange Deribit for $2.9 billion

Published

4 hours ago

May 8, 2025

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Coinbase acquires crypto derivatives exchange Deribit for .9 billion

The Coinbase logo is displayed on a smartphone with stock market percentages on the background.

Omar Marques | SOPA Images | Lightrocket | Getty Images

Coinbase agreed to acquire Dubai-based Deribit, a major crypto derivatives exchange, for $2.9 billion, the largest deal in the crypto industry to date.

The company said Thursday that the cost comprises $700 million in cash and 11 million shares of Coinbase class A common stock. The transaction is expected to close by the end of the year.

Shares of Coinbase rose nearly 6%.

The acquisition positions Coinbase as an international leader in crypto derivatives by open interest and options volume, Greg Tusar, vice president of institutional product, said in a blog post – which could allow it take on big players like Binance. Coinbase operates the largest marketplace for buying and selling cryptocurrencies within the U.S., but has a smaller share of the global crypto market, where activity largely takes place on Binance.

Deribit facilitated more than $1 trillion in trading volume last year and has about $30 billion of current open interest on the platform.

“We’re excited to join forces with Coinbase to power a new era in global crypto derivatives,” Deribit CEO Luuk Strijers said in a statement. “As the leading crypto options platform, we’ve built a strong, profitable business, and this acquisition will accelerate the foundation we laid while providing traders with even more opportunities across spot, futures, perpetuals, and options – all under one trusted brand. Together with Coinbase, we’re set to shape the future of the global crypto derivatives market.”

Tusar also noted that Deribit has a “consistent track record” of generating positive adjusted EBITDA the company believes will grow as a combined entity.

“One of the things we liked most about this deal is that it’s not just a game changer for our international expansion plans — it immediately diversifies our revenue and enhances profitability,” Tusar told CNBC.

The deal comes at a time when the crypto industry is riding regulatory tailwinds from the first ever pro-crypto White House. Support of the industry has fueled crypto M&A activity in recent weeks. In March, crypto exchange Kraken agreed to acquire NinjaTrader for $1.5 billion, and last month Ripple agreed to buy prime broker Hidden Road.

Don’t miss these cryptocurrency insights from CNBC Pro:

Technology

Whoop launches two new wearables with 14-day battery life

Published

5 hours ago

May 8, 2025

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Whoop launches two new wearables with 14-day battery life

Whoop member wears the new device.

Courtesy of Whoop

Whoop on Thursday announced two new wearable devices, Whoop 5.0 and Whoop MG, which feature sleeker hardware, a longer battery life and additional in-app health insights.

Both of the company’s new devices are designed for 24/7 wear.

The Whoop 5.0 and Whoop MG support 14 days of battery life, which is around triple the four-to-five-day range offered by Whoop 4.0. The new hardware is also 7% smaller than the previous device, with a processor that’s 60% faster, the company said.

“We’ve taken everything we’ve learned over the past decade and built a platform to help our members perform and live at their peak for longer,” Whoop founder and CEO Will Ahmed said in a release.

The launch marks Whoop’s first major hardware update since 2021, when the company released Whoop 4.0. Whoop said its new devices will help users understand how their daily decisions impact their performance and health outcomes over time, according to a release.

Cost and tiers

There are three annual membership tiers: Whoop One, which costs $199 and includes the Whoop 5.0; Whoop Peak, which costs $239 and includes the Whoop 5.0; and Whoop Life, which costs $359 and includes the Whoop MG. Accessories like additional bands will come at an extra cost.

Whoop 5.0 and Whoop MG memberships and accessories are available for purchase online starting on Thursday.

Whoop’s new membership options.

Whoop

Whoop One members will be able to use their Whoop 5.0 to measure sleep, strain and recovery, as well as the cardiovascular and muscular impact of various workouts. Users can also track their menstrual cycles and pregnancies.

Whoop Peak builds on those core metrics. Members have access to a Health Monitor feature, which provides a quick look at vitals like respiratory rate, heart rate, blood oxygen, and skin temperature. Whoop Peak also supports a real-time stress monitor, where users can see their stress level and complete guided breathing sessions if they’d like to increase relaxation or alertness.

The company also unveiled a feature called Healthspan, which uses nine metrics to calculate adult users’ Whoop Age and Pace of Aging. A user’s Whoop Age compares their physiological age to their actual age, and Pace of Aging assesses how fast or slow someone is aging based on their behavior.

The Healthspan feature is updated every week, and users will get tips about how they can improve their Whoop Age and Pace of Aging in their app. Whoop developed this feature in partnership with the Buck Institute for Research on Aging, the company said.

The most comprehensive membership is Whoop Life, which will give users access to additional medical-grade health features with Whoop MG.

Whoop Life members can record an electrocardiogram, or an ECG, to detect irregular heart rhythms like AFib, high heart rate or low heart rate. Once the reading is complete, they can share a PDF of the recording with their doctor.

The ECG feature has been cleared by the U.S. Food and Drug Administration. It’s not intended for users under 22 years old, or for users with a cardiac pacemaker or other implanted devices. It will be available in the U.S., the UAE and Qatar at launch, with additional countries coming soon.

Whoop Life members can also get daily insights about their blood pressure, including estimated systolic and diastolic ranges. Users will have to log a traditional cuff-reading to act as a baseline to unlock this feature, and it’s not intended for treatment, diagnosis or medical use.

Whoop said Blood Pressure Insights has been in development for several years, and the feature is currently in beta.

Quick takeaways

Ashley Capoot wearing Whoop MG

Ashley Capoot

I got a sneak peek at the Whoop MG, and I’ve been wearing it for the past few days. I can’t speak to what it’s like to wear the device over an extended period, but my initial experience has been largely positive.

From a hardware standpoint, the Whoop MG looks and feels sleeker than the Whoop 4.0, which I tested out in April. The actual sensor is roughly an inch wide, and the band is slightly thinner than that. I’ve found that both the Whoop MG and the Whoop 4.0 are a little hard to take off — you really have to tug on the latch.

The Whoop MG’s setup is very straightforward, and I was up and running on the app in a matter of minutes. With all the new features, there’s a lot of additional data to make sense of, so the app seemed pretty busy to me at first. I felt like I had a better handle on it after a few hours, though, and I haven’t felt pressure to constantly monitor it.

Of the new features, I thought Healthspan was particularly interesting. As a relatively healthy 24-year-old, I noticed I still felt relieved to be “younger” than my age. I’d be curious to see how that feature would change based on my behaviors from week to week.

I also liked the Whoop MG’s detailed sleep tracking and the real-time stress monitor, as stress is something I’ve personally been trying to be more mindful of. I’ve learned that my stress levels really skyrocket while I’m taking public transport, for instance, and adjust accordingly.

After about a dozen tries, I wasn’t able to log a successful ECG reading. I kept getting errors, even after switching wrists and the positioning of my arms. That’s been disappointing, as I’m interested to see my results. The Blood Pressure Insights are neat, and assuming other users can successfully record ECG readings, it’s easy to see the potential benefit. That said, I don’t think I need those features in my daily life yet, so the Whoop Life membership probably wouldn’t be the right pick for me.

I’m not totally sold on the Whoop MG’s aesthetics. I have small hands and wrists, so I always feel like smart devices tend to look clunky on me.

I definitely felt like the Whoop 4.0 was too big for me, but the Whoop MG doesn’t bother me quite as much. That’s just my personal taste, and there are lots of Whoop accessories you can buy to spiff up the device for different occasions.

After just a few days, there’s a lot I can still learn from the Whoop MG, but I feel like I’d personally reach for the Whoop 5.0. The range of membership options helps ensure that users don’t have to break the bank, so I’d feel comfortable recommending Whoop 5.0 and Whoop MG to my friends and family. And for existing Whoop customers who are thinking about an upgrade, the extended battery life alone is worth considering.