Baidu Shares Rise 9% Following AI Model Launch

Shares of Baidu surged by approximately 9% following the release of two new AI models, ERNIE 4.5 and ERNIE X1, which are designed to compete with DeepSeek's offerings. The ERNIE X1 model is claimed to deliver performance comparable to DeepSeek R1 at half the cost, showcasing advanced capabilities in understanding, reasoning, and multimodal processing. Baidu's advancements in AI technology are part of its strategy to reclaim its leading position in China's competitive AI landscape, where it has faced challenges from newer entrants like DeepSeek. Despite broader market declines, Baidu's stock reflects investor optimism about its innovations and potential for growth in the AI sector. Analysts suggest that while Baidu faces financial risks, its technological advancements and patent holdings position it favorably in the market. The recent stock movement indicates a growing confidence among investors in Baidu's future amidst a backdrop of increased demand for AI solutions.