Chinese firms may be the AI race’s dark horse. Chinese tech start-up DeepSeek took the tech world by surprise last week after the company revealed a chatbot whose AI model was uncannily good — like, ChatGPT-level good. The reveal has prompted many to take a second look at Chinese tech companies like Baidu, ByteDance, and DeepSeek — all of which are diversifying into tools that could reshape the AI landscape, CNBC writes.

A case in point: Best known for its chatbot Ernie, Chinese tech company Baidu recently launched an AI agent platform — dubbed Wenku — that creates powerpoints and other documents from sources as complex and arcane as financial statements. The app’s slide decks have rapidly garnered adherents, with the service reaching 40 mn paying users and revenue up 60% over last year.

AI agents are the next horizon for Chinese tech firms. Unlike AI models — which focus on one specific function — AI agents automate entire processes. Chinese companies are soon expected to bring these agents to market at scale, a development that comes as their existing models are increasingly integrated into novel corporate and commercial products. “The magic that Chinese technology companies have consistently displayed is coming up with compelling consumer products at competitive price points,” Albright Stonebridge Group partner Paul Triolo told the salmon-backed paper. “This will give them an edge over foreign companies in integrating AI into useful applications at scale.”

Navigating China’s regulatory environment isn’t always smooth sailing, though. Baidu’s Ernie, for instance, wasn’t approved by Chinese regulators until August 2023 — almost a year after ChatGPT had launched. Yet tighter restrictions also play to Chinese firms’ advantage. At a time when local firms are integrating more and more AI tools into domestically manufactured smartphones, Apple has yet to receive the Chinese government’s greenlight to roll out Apple Intelligence to iPhones in the country.

TikTok’s suitors are up against the clock. The fate of TikTok hangs in the balance as Oracle leads discussions to take over its global operations, the US’ National Public Radio reports. The potential acquisition is taking place against the backdrop of an executive order signed by US president Donald Trump that gave TikTok a 75-day reprieve from enforcement actions related to its Chinese parent company ByteDance’s divestment, originally set for 19 January.

The players and the plan: The partnership under discussion could see Oracle managing the app’s day-to-day operations, while other investors — such as Microsoft — would serve as key partners. ByteDance would retain a minority stake, maintaining some level of influence over the platform. Under the proposed transaction, Oracle would oversee critical elements such as data collection, software updates, and the app’s algorithm — a move aimed at addressing concerns over TikTok’s Chinese ownership and its implications for user privacy and US national security.

And that’s not the only plan on the drawing board: US search engine startup Perplexity has proposed merging with TikTok’s US outfit under a new holding company dubbed NewCo, Reuters reports. Under the plan, the US government would be set to own up to 50% of the new company after a future IPO valued at USD 300 bn. The merger proposal could satisfy regulatory concerns about the sale of the social media giant, while simultaneously aligning with President Trump’s suggestion that the US government gain control of a 50% stake in the company.

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