Al's layout, Baidu, Ali, Tencent three-legged

Artificial Intelligence (AI) has always been a focal point for the tech giants. The ultimate aim of AI development is to apply it across industries, finding the right use cases that truly unlock its value. Identifying these scenarios is key to maximizing AI's potential. As AI continues to evolve, major technology companies and businesses are increasingly looking to integrate AI into various sectors, ensuring their place in the future. Among them, the retail industry—being one of the largest in the ecosystem—has become a prime target for AI innovation. With the rise of AI, the "Big Three" of China—Baidu, Alibaba, and Tencent (BAT)—have started a new round of strategic competition. While they remain dominant today, only time will tell who will gain the upper hand in this evolving landscape.  At a recent meeting, an executive asked, “What if our competitors also acquire?” I replied, “Don’t worry, our competitors don’t buy tech companies—they focus on products and users. They pay for scale, not for technology. Only Baidu pays for tech,” said Li Yanhong. “I may not fully understand technology, but not knowing isn’t shameful. It’s actually more shameful to pretend to know when you don’t. Without Alibaba’s technology, we wouldn’t have the business we have today. I’m proud of our 25,000 engineers.” “Tencent focuses more on what we can do with AI,” said Ma Huateng. In terms of AI strategy, BAT is still leading the race. Here are some key events: - **July 5**: Baidu Developer Conference – “All in AI” - **October 11**: Alibaba Yunqi Conference – Establishment of the Dharma Institute (DAMO), focusing on machine intelligence, intelligent networking, and financial technology. - **November 8**: Tencent Global Partner Conference – “AI in All” While Baidu has made significant strides, it has also faced challenges. Jack Ma, once clear-cut in his stance, now leads the charge with Dharma. Meanwhile, Pony Ma remains focused on profitability, as usual. **1. Baidu: All in AI, Two Major Products Leading the Way** Baidu has been heavily promoting AI. From the stage of “The Strongest Brain,” Wu En-da defeated the renowned “Water Brother” Wang Hao using “Little Du.” Later, Robin was caught by traffic police for the five rings on his car. After all the hype, Baidu finally unveiled two key AI products: **Dueros** and **Apollo**. Dueros focuses on speech, natural language processing, and image recognition, offering developers integrated software and hardware solutions. Apollo is an autonomous driving platform, providing comprehensive solutions for hardware, software, and services. Its goal is to lower the R&D barrier for self-driving vehicles and accelerate the adoption of AI in transportation. Currently, Baidu’s AI products are mainly targeted at developers, and the average consumer is still far from experiencing these technologies directly. **2. Dharma Institute: Can It Reach the Pinnacle of Technology?** If Baidu’s AI is like a hidden master, then Alibaba’s AI is more like a well-known figure in the field. During the Double 11 shopping festival, Alibaba announced that its AI system “Luban” can generate 8,000 banners in just one second, leaving designers in awe. Jack Ma also made a big move at the Yunqi Conference by announcing the establishment of the **Dharma Institute**, part of Alibaba’s “NASA Plan.” Research areas include quantum computing, machine learning, basic algorithms, network security, visual computing, natural language processing, human-machine interaction, chip technology, and more. Still in early stages, the Dharma Institute is expected to push the boundaries of AI research. **3. Tencent: AI in All, Focused on Games, Social, and Content** Tencent has shifted its AI slogan to “AI in All.” With its core strengths in games, social platforms, and content, Tencent is making waves in the AI space. Given that gaming revenue makes up half of Tencent’s annual earnings, investing in game AI is logical. The company aims to enhance player experiences through AI and study complex interactions between humans, agents, and environments. In social applications, Tencent is working on natural language understanding, speech recognition, and smart home interactions, including chatbots, voice assistants, and human-machine dialogue. In content, the focus is on analyzing and understanding user preferences to improve content matching and recommendation systems. Tencent also mentioned how AI played a role in the popular game “Honor of Kings,” where AI trained against top Go players. In the world of games, AI could be the next big thing, bridging the gap between virtual and real worlds. **4. The War Behind the Scenes** VR and AR are set to become the best interfaces for interacting with real AI. The fusion of AI with VR and AR will blur the lines between the virtual and real worlds. As AI advances, it’s no longer just about BAT. Companies like Toutiao have benefited greatly from AI-driven content distribution, changing reading habits and even challenging Baidu’s dominance. Meanwhile, NetEase has also made moves, launching its Intelligent Business Department and showcasing AI products like “Netease Insights” and “Netease Shadows.” NVIDIA’s Brian sees AI as a tool for intellectual work, being applied in e-commerce, healthcare, telecom, and more. The ultimate goal is to change the world or create a connected virtual reality. AI is the strongest vent, playing a crucial role in building a virtual world. Though the journey may be difficult, the view is worth it.

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