Baidu Embeds Ernie Into Main App To Strengthen AI Strategy

Baidu is embedding Ernie Bot into its main app, aiming to use its search dominance to expand in artificial intelligence.

At his first internal address of 2026, Baidu CEO Robin Li stressed that in the AI era, applications matter most. He placed special focus on AI agents as the next key battleground.

Four Types Of AI Agents

For the first time, Li clearly outlined four categories of agents at Baidu.

These include search agents, which he described as the company’s main priority.

The second type is “digital human” agents under the Huiboxing brand. The third is coding agents distributed through Miaoda, and the fourth is “self-evolving” AI agents codenamed Famou.

Baidu also clarified how Ernie Bot fits with its core search business.

Traditional search provides users with a list of links. In the AI era, search acts more like an agent powered by a large language model, or LLM, which can generate and understand human language.

Two Paths For AI Search

Baidu is testing two approaches.

One is Baikan, which shows a headline image and an LLM-generated answer directly in search results.

The other is Ernie Bot, accessible through a central button inside the Baidu app. There, it works as a chatbot.

Instead of pushing users to download a separate AI app, Baidu is integrating AI directly into its existing platform.

With more than 700 million monthly active users, the Baidu app provides a built-in distribution channel. Users can switch from traditional search to Ernie with a single tap.

This strategy mirrors Google’s integration of Gemini into Gmail and Android. Embedding AI into high-frequency products lowers switching costs and increases adoption.

AI Race Among Tech Giants

Baidu’s move comes as China’s major tech founders return to active leadership roles in AI.

Jack Ma at Alibaba has promoted a “golden triangle” strategy of large models, cloud computing, and chips through Tongyi Lab, Alibaba Cloud, and T-Head Semiconductor. Alibaba’s Qwen app has become its main AI entry point.

Tencent’s Pony Ma has launched new AI-driven social features under Yuanbao, including digital red envelopes worth RMB 1 billion. ByteDance’s Liang Rubo is expanding Doubao and Dola.

According to company disclosures and media reports including The Wall Street Journal, Ernie Bot has surpassed 200 million monthly active users. Doubao and Qwen have each crossed 100 million users, narrowing competition to three main players.

Industry observers estimate that tech firms are spending around RMB 6 billion in 2026 to win users before focusing on profits.

Full-Stack AI Strategy

Baidu’s advantage lies in its full-stack structure, covering chips, cloud services, AI models, and agents.

Kunlunxin, Baidu’s chip unit, filed for a Hong Kong IPO on January 1. Longbridge Securities estimates that chip orders could generate significant revenue growth if production constraints ease.

Baidu AI Cloud reported RMB 4.2 billion in AI revenue in the third quarter, up 33% year on year. Subscription revenue from AI high-performance computing infrastructure rose 128%, according to company disclosures.

At the model level, Baidu released Ernie 5.0 on January 22. The model has 2.4 trillion parameters and supports multimodal inputs including text, images, audio, and video.

Baidu said Ernie 5.0 outperformed Gemini 2.5 Pro and GPT-5 High across more than 40 benchmarks.

By aligning chips, cloud infrastructure, and AI models, Baidu aims to improve inference efficiency and supply chain control.

Whether this integrated approach will secure leadership in China’s AI race remains unclear. For now, Baidu’s strategy gives it scale, technical depth, and a strong position as competition intensifies.

Sources: 36Kr, KrASIA, The Wall Street Journal, Longbridge Securities, Baidu company disclosures.