Baidu, Inc's founder Robin Li has called for a shift from developing large language models to creating applications for existing models like Baidu's 'Ernie'. Despite this, competition in China's AI sector is increasing, with many homegrown models emerging. Baidu has faced challenges such as high executive turnover and internal conflicts, partly attributed to the joint presence of Li and his wife Melissa Ma. Baidu's focus on AI and large language models, including Ernie, is seen as crucial for its future amidst a crowded market and regulatory challenges. Alibaba Group Holding Limited's CEO also highlighted a shift towards AI, aiming to become an 'open technology platform'. Baidu's shares saw a slight decrease in premarket trading.