Baidu Emerges as China’s Top AI Chip Contender

Today, we’re looking at Baidu’s quiet rise as China’s next big AI chipmaker. As U.S. restrictions sideline Nvidia, Baidu is positioning its Kunlun unit to supply the domestic market and potentially lead the next wave of AI infrastructure in China. We’re also looking at Japan’s shift from splashy tech investments to steady-state AI funding. With a new $1.6B allocation tucked into its regular budget, Japan is signaling that semiconductors and AI aren’t just trends, they’re part of the country’s long-term industrial strategy.

In today’s post:

• China just found its next AI chip giant

• Japan’s $1.6B AI chip boost

• Stop saying “Fix my grammar” to AI try these instead

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GROWTH

Baidu’s AI chip bet is paying off

Baidu isn’t just a search engine anymore. It’s quietly becoming one of China’s most important AI hardware companies.

Here’s everything you need to know:

• With Nvidia blocked from selling high-end chips to China, the country’s tech giants need domestic alternatives.

• Baidu’s answer? Kunlunxin, a self-developed AI chip unit now gaining serious momentum.

• Analysts are bullish: forecasts show Baidu’s chip sales could hit $1.1B by 2026.

• The chips aren’t just for Baidu, they’re already being sold to China Mobile and powering Baidu’s own data centers.

• Beijing’s push for self-reliance makes Baidu’s chips more than a business move, they’re strategic infrastructure.

• Unlike Alibaba or Tencent, Baidu offers a full-stack AI setup: chips, servers, models, and cloud services.

• If they deliver on their roadmap, Baidu could become the go-to AI chip supplier for China’s tech sector.

This isn’t just about chips, it’s about resilience. Baidu’s move shows how fast companies can pivot when geopolitics and demand collide. And whoever solves China’s AI hardware gap wins more than just market share, they win long-term influence.

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STRATEGY

Japan shifts its AI chip strategy from splashy to steady

Japan just approved ¥252.5 billion ($1.6 billion) in extra AI and semiconductor funding far less than last year. But this isn’t a pullback. It’s a pivot.

Here’s everything you need to know:

• In 2024, Japan allocated ¥1.5 trillion in emergency tech spending. This year’s ¥252.5B is a fraction of that.

• But here’s the shift: future AI and chip investments will move into regular budgets, not just one-off boosts.

• That means steadier, long-term support not dramatic headline numbers.

• Lawmakers say this change will give AI and semiconductor firms more predictability.

• The focus remains on domestic innovation and reducing reliance on foreign chipmakers.

• Japan wants to stay competitive amid U.S.-China chip tensions and regional tech rivalries.

• Stable funding may also help startups and research institutions plan beyond annual cycles.

Flash funding makes headlines, but steady budgets build industries. Japan’s move signals that AI and chips aren’t just tech priorities, they’re now part of national infrastructure. Expect others to follow suit.

EDUCATION

Your AI writing tool is only as good as your prompt

Chidanand Tripathi, an AI expert, shared a simple truth: if you’re vague with ChatGPT, you’ll get vague results. Especially when it comes to writing.

Here’s everything you need to know:

• Telling ChatGPT “fix my grammar” is like asking a chef to “make food.” You’ll get something, but not great.

• Tripathi outlined seven prompts that turn AI into a real-time editor, not a clumsy proofreader.

• Each one gives clear instructions not just to fix mistakes, but to shape tone, clarity, and flow.

• Want it more human? More formal? More friendly? There’s a prompt for that.

• The key: be specific about what you want changed and how you want it to feel.

• You don’t need to be a writer you just need to know how to steer the AI.

• Think of these prompts as templates. Paste your text in, tweak the tone, and you’re done.

Most people aren’t bad writers, they’re just not using the right tools the right way. Learning to prompt better is like learning to think more clearly. And that’s a skill worth having.

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