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Baidu launches new AI models to compete in global race

Baidu has unveiled two new AI models, including ERNIE X1, which it claims matches the performance of DeepSeek R1 at half the cost. The company says X1 is a deep-thinking model capable of autonomous tool use, with enhanced reasoning, planning, and adaptability.

Meanwhile, Baidu’s latest foundation model, ERNIE 4.5, boasts improved multimodal capabilities, advanced language understanding, and a better grasp of satire and internet culture.

The Chinese tech giant has been striving to compete in the rapidly evolving AI landscape, where startups like DeepSeek have disrupted the industry with high-performing, cost-effective models. While Baidu was one of the first Chinese companies to launch a ChatGPT-style chatbot, its Ernie LLM has faced challenges in achieving widespread adoption.

With growing competition from domestic and international AI firms, Baidu aims to solidify its position through continuous innovation. The company’s latest advancements highlight the push for more sophisticated AI systems capable of processing diverse forms of data, including text, images, and audio, as China intensifies its efforts to lead in AI.

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DeepSeek focuses on innovation instead of rapid commercial growth

Chinese AI company DeepSeek is prioritising research over revenue, resisting the rush to capitalise on recent sales growth.

Unlike its Silicon Valley counterparts, the firm has chosen to refine its technology rather than focus on immediate profits.

According to sources familiar with its operations, DeepSeek achieved financial stability last month for the first time, with revenues covering ongoing costs.

Despite the financial milestone, its billionaire founder remains committed to long-term innovation rather than aggressive commercial expansion.

The decision reflects a broader trend in China‘s AI sector, where some firms are investing heavily in research to compete globally.

As AI adoption accelerates, DeepSeek’s strategy signals confidence in future breakthroughs over short-term financial gains.

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Tech giant Oracle considers expanding cloud operations to Indonesia

Oracle is in discussions with the Indonesian government to establish a cloud services centre on Batam Island, according to sources familiar with the matter.

The island’s Nongsa Digital Park is being considered due to its free trade zone status and proximity to Singapore and Malaysia, where Oracle is already expanding its cloud operations.

The move aligns with Oracle’s broader strategy to strengthen its presence in Asia. In October, the company announced plans to invest over $6.5 billion in its first public cloud region in Malaysia.

The firm is also developing more data centres across the region, spanning from Japan to New Zealand and India.

Oracle currently operates two cloud facilities in Singapore and has 50 public cloud regions across 24 countries. Its ongoing expansion reflects the growing demand for cloud services in Southeast Asia, with Indonesia emerging as a key market for future investment.

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Chinese hedge funds boost AI for competitive edge

China’s hedge fund industry is undergoing a transformative shift, spurred by High-Flyer’s integration of AI in its trading strategies. The multi-billion-dollar fund not only uses AI to enhance its portfolio but also created DeepSeek, a game-changing LLM that has disrupted the dominance of Western AI firms like those in Silicon Valley.

The breakthrough has ignited an AI arms race among Chinese asset managers, including firms like Baiont Quant, Wizard Quant, and Mingshi Investment Management, as they rush to incorporate AI into their investment workflows.

AI-powered trading has gained momentum, with many hedge funds now using AI to process market data and generate trading signals based on investor risk profiles. As competition for “alpha” (outperformance) intensifies, the demand for AI talent is surging.

Companies like Wizard Quant and Mingshi are actively recruiting top AI engineers, and even mutual funds, such as China Merchants Fund, have adopted DeepSeek to boost their efficiency. The open-source model has democratised access to AI, lowering the entry barrier for smaller Chinese funds, which had previously been unable to compete with their Western counterparts due to high costs.

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China claims quantum supremacy with Zuchongzhi 3.0 chip

Chinese researchers have developed the Zuchongzhi 3.0, a quantum processor 1 quadrillion times faster than the world’s best supercomputers. The 105-qubit chip, created at the University of Science and Technology of China, achieved impressive results, completing a quantum task in mere seconds—1 million times faster than Google’s Sycamore chip.

A breakthrough like this marks a major step forward in quantum computing, especially with its enhancements in coherence time and quantum error correction. The processor’s transmon qubits, made from materials like tantalum and niobium, also show significant improvements in gate fidelity, leading to more accurate computations.

Despite these advancements, experts note that classical computing methods could still close the gap, as seen in past quantum supremacy claims.

Zuchongzhi 3.0’s exceptional performance paves the way for more practical quantum computing applications, promising a new era of solving complex real-world challenges. The progress made in quantum gate fidelity and reduced noise sensitivity places China’s quantum processing technology at the forefront of global developments.

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The role of AI in precision farming for wine production

AI is making its mark in the wine industry, with vineyards across California adopting cutting-edge technology to optimise crop production.

One notable example is Napa Valley farmer Tom Gamble, who has integrated an autonomous tractor equipped with AI sensors to map his vineyard.

These AI-powered machines gather data that allows farmers to make more informed decisions about water use, fertilizer application, and pest control, improving efficiency and sustainability.

AI’s influence extends beyond tractors. Companies like John Deere in the US have developed AI-driven technologies that help vineyard managers apply materials more precisely, reducing waste and environmental impact.

Smart irrigation systems, for example, can monitor water use and even shut off in case of leaks, making vineyards more water-efficient.

Despite concerns about the cost of adopting such technology, particularly for smaller, family-run vineyards, AI offers a way to streamline operations and adapt to changing environmental conditions.

While AI is enhancing wine production, it also aids in managing crop health and predicting yields. By analysing images and soil data, AI systems can detect early signs of disease or nutrient deficiencies, helping farmers take preventive action before issues escalate.

However, this technology allows vineyards to make smarter decisions, ultimately improving the quality and consistency of their wine production.

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UK Technology Secretary uses ChatGPT for advice on media and AI

Technology Secretary Peter Kyle has been using ChatGPT to seek advice on media appearances and to define technical terms related to his role.

His records, obtained by New Scientist through freedom of information laws, reveal that he asked the AI tool for recommendations on which podcasts to feature and for explanations of terms like ‘digital inclusion’ and ‘anti-matter.’

ChatGPT suggested The Infinite Monkey Cage and The Naked Scientists due to their broad reach and scientific focus.

Kyle also inquired why small and medium-sized businesses in the UK have been slow to adopt AI. The chatbot pointed to factors such as a lack of awareness about government initiatives, funding limitations, and concerns over data protection regulations like GDPR.

While AI adoption remains a challenge, Labour leader Sir Keir Starmer has praised its potential, arguing that the UK government should embrace AI more to improve efficiency.

Despite Kyle’s enthusiasm for AI, he has faced criticism for allegedly prioritising the interests of Big Tech over Britain’s creative industries. Concerns have been raised over a proposed policy that could allow tech firms to train AI on copyrighted material without permission unless creators opt out.

His department defended his use of AI, stating that while he utilises the tool, it does not replace expert advice from officials.

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AI-driven robotics set for growth with Google’s latest models

Google has introduced two new AI models designed specifically for robotics, building on its Gemini 2.0 technology. The launch aims to support the rapidly advancing robotics industry, which is increasingly benefiting from AI improvements.

The first model, Gemini Robotics, enables robots to generate physical actions as outputs, while the second, Gemini Robotics-ER, enhances spatial awareness and reasoning abilities for developers.

The move follows a significant AI breakthrough by robotics startup Figure AI, which recently ended its collaboration with OpenAI.

Google has tested its Gemini Robotics model on its bi-arm robotics platform, ALOHA 2, and believes the technology can be adapted for complex applications, such as Apptronik’s Apollo robot.

Investment in robotics is accelerating, with Apptronik securing $350 million in funding last month, including backing from Google.

Google’s AI models are designed for various types of robots, from humanoid machines to industrial units used in factories and warehouses.

Industry experts believe AI-focused robotics models will help startups reduce costs and bring products to market faster. Google has a long history in robotics, having acquired Boston Dynamics in 2013 before selling it to SoftBank four years later.

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EU draft AI code faces industry pushback

The tech industry remains concerned about a newly released draft of the Code of Practice on General-Purpose Artificial Intelligence (GPAI), which aims to help AI providers comply with the EU‘s AI Act.

The proposed rules, which cover transparency, copyright, risk assessment, and mitigation, have sparked significant debate, especially among copyright holders and publishers.

Industry representatives argue that the draft still presents serious issues, particularly regarding copyright obligations and external risk assessments, which they believe could hinder innovation.

Tech lobby groups, such as the CCIA and DOT Europe, have expressed dissatisfaction with the latest draft, highlighting that it continues to impose burdensome requirements beyond the scope of the original AI Act.

Notably, the mandatory third-party risk assessments both before and after deployment remain a point of contention. Despite some improvements in the new version, these provisions are seen as unnecessary and potentially damaging to the industry.

Copyright concerns remain central, with organisations like News Media Europe warning that the draft still fails to respect copyright law. They argue that AI companies should not be merely expected to make ‘best efforts’ not to use content without proper authorisation.

Additionally, the draft is criticised for failing to fully address fundamental rights risks, which, according to experts, should be a primary concern for AI model providers.

The draft is open for feedback until 30 March, with the final version expected to be released in May. However, the European Commission’s ability to formalise the Code under the AI Act, which comes into full effect in 2027, remains uncertain.

Meanwhile, the issue of copyright and AI is also being closely examined by the European Parliament.

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Intel appoints new CEO to compete in AI chip market

Intel has appointed tech industry veteran Lip-Bu Tan as its chief executive, aiming to revitalise the struggling chipmaker as it falls behind in the AI race.

Tan, set to take over next week, told employees that overcoming Intel’s challenges would not be easy but reaffirmed his commitment to an engineering-first approach.

Following the announcement, Intel’s shares surged by more than 10 per cent in after-market trading.

Once a dominant force in the semiconductor industry, Intel has been outpaced by Taiwan Semiconductor Manufacturing Co (TSMC) and Samsung Electronics, which lead in made-to-order chip production.

It also lags behind Nvidia, which has emerged as the top AI chip provider. Tan replaces Pat Gelsinger, who was ousted last year after the board lost confidence in his turnaround efforts, which included cutting 15,000 jobs and delaying chipmaking projects.

Tan, previously head of Cadence Design Systems, pledged to restore Intel’s reputation by taking calculated risks to outmanoeuvre competitors.

He intends to continue the company’s plan to manufacture chips for other firms, directly challenging TSMC. However, analysts remain cautious, questioning whether Intel will split its foundry and chip design businesses or prove its ability to deliver cutting-edge technology.

Intel also faces a growing battle in AI, where Nvidia dominates the data centre chip market. Analysts warn that without a compelling AI strategy, Intel could struggle to regain investor confidence.

Tan, however, remains optimistic, vowing to transform Intel into a world-class chipmaker while ensuring customer satisfaction.

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