China Urges AI Self Sufficiency

Plus, 🕵️‍♂️ Google’s Most Powerful AI Model Is Hiding, Here’s How to Unlock It, Baidu Slashes AI Model Prices and Launches New Tools, and more!

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🇨🇳 Xi Jinping Urges AI Self-Sufficiency Amid U.S. Rivalry

China’s President Xi Jinping has made AI self-sufficiency a national priority, pushing for breakthroughs in chips, software, and talent development. Speaking at a Politburo meeting, he emphasized building a fully independent AI ecosystem amid intensifying competition with the U.S. 

The Decode:

Xi Pushes for "Whole National System" Approach - Xi called for centralized efforts to develop high-end AI chips, software, and a fully independent tech infrastructure. He stressed the need for basic research, core tech mastery, and a collaborative AI ecosystem. 

Government Expands Policy and Funding Support - China plans to strengthen IP protections, fund critical AI research, and accelerate AI regulations for safety and control. Xi emphasized creating a risk warning and emergency system to manage AI safely. 

Chinese Firms Already Making Big Strides - Huawei is reportedly testing a domestically produced AI chip to replace NVIDIA’s offerings amid U.S. export controls. Meanwhile, DeepSeek's upcoming R2 model promises better efficiency and affordability using homegrown chips. 

China Aims to Bypass U.S. Restrictions Entirely - DeepSeek’s earlier breakthroughs, achieved with less advanced hardware, challenged assumptions about China’s AI dependency. Xi’s new initiative puts full national resources behind ensuring future AI progress remains independent of U.S. tech. 

With growing talent pools, domestic chip advances, and resilient AI innovation even under sanctions, China is rapidly reshaping the global AI landscape. Xi’s directive makes it clear: the next wave of AI leadership might not depend on access to American technology, it could be built entirely at home.

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🕵️‍♂️ Google’s Most Powerful AI Model Is Hiding — Here’s How to Unlock It

Most people do not realize it yet, but Gemini 2.5 Pro with Web Grounding is Google’s best AI model — and it is only available inside AI Studio. With real-time web access, it goes beyond standard models by thinking, searching, and citing its sources like a true research assistant.

Here’s how to use it:

Step-by-Step Guide to Access Gemini 2.5 Pro with Grounding

1. Go to Google AI Studio: Visit https://aistudio.google.com/ and log in with your Google account.

2. Select Gemini 2.5 Pro Preview: When starting a new project, select Gemini 2.5 Pro Preview from the model options.

3. Activate Grounding with Search: Turn on the Grounding with Google Search option. This allows Gemini to fetch live information instead of relying only on its internal training.

4. Start Asking Questions: Now when you type prompts or research questions, Gemini will:

  • Search the web in real time
  • Process and cross-verify information
  • Deliver well-structured answers
  • Provide direct source links for every fact

5. Use It for Advanced Work: Perfect for live market research, fact-checking, report writing, content updates, and anything needing accurate real-world data.

With this setup, you are not just chatting with AI — you are collaborating with an active, thinking, real-time researcher. Try it and you will see why it is Google’s hidden gem.

🚀 Baidu Slashes AI Model Prices and Launches New Tools to Tackle DeepSeek

Baidu has rolled out major upgrades to its ERNIE AI models, dramatically cutting costs while expanding capabilities. Unveiled at its Create 2025 event, Baidu’s strategy squarely targets domestic rivals like DeepSeek and ByteDance. 

The Decode:

ERNIE 4.5 Turbo Launches at 80% Lower Cost - Baidu's new ERNIE 4.5 Turbo model now costs just 11 cents per million input tokens, a massive 80% price cut. It also claims better multimodal performance than GPT-4o on benchmarks. 

ERNIE X1 Turbo Undercuts DeepSeek R1 Pricing - The ERNIE X1 Turbo, Baidu’s reasoning model, is priced at 14 cents per million input tokens. That’s reportedly 75% cheaper than DeepSeek R1, setting up direct competition. Baidu also claims X1 outperforms DeepSeek’s R1 and V3 models on core benchmarks.

New Multi-Agent and Avatar Platforms Debut - Baidu introduced Xinxiang, a multi-agent system capable of automating over 200 tasks across workflows. It also launched Huiboxing, a digital avatar creation platform for businesses and developers. 

Baidu Founder Throws Shade at Rivals - Robin Li emphasized that Baidu’s models have fewer hallucinations compared to DeepSeek’s R1. He noted the text-only model market is "shrinking," hinting that richer multimodal systems will dominate. Baidu also revealed it’s using 30,000 self-produced AI chips to power its ecosystem.

With claims of outperforming rivals at a fraction of the cost, Baidu is positioning itself as a serious contender not just in China, but globally — and the gap between Chinese labs and Western giants is narrowing

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👾 OpenAI launches a “lightweight” version of ChatGPT’s deep research tool, powered by the o4-mini model, offering shorter but high-quality responses, with free users getting five tasks per month.

🎁 Google pays Samsung an “enormous sum” monthly plus Gemini subscription revenue to preinstall Gemini, revealed during its antitrust trial, amid DOJ concerns over restrictive deals and potential penalties.

🤖 Elon Musk announced that X’s feed will soon update with xAI’s Grok 3 model, boasting 10x more compute, enhanced post interpretation, and competitive performance against ChatGPT-4o and Gemini 2 Pro.

🦁 Digital publisher Ziff Davis, owner of Mashable, PCMag, and IGN, sued OpenAI, alleging the company stole its content to train AI models, seeking hundreds of millions in damages.

🔤 Moonshot AI launched Kimi-Audio, a state-of-the-art open-source audio foundation model trained on 13 million hours, excelling in ASR, AQA, TTS, and speech-to-speech tasks.

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