Baidu's AI Breakthrough Sparks Market Excitement

In a significant leap forward in AI technology, Baidu Inc. unveiled two groundbreaking artificial intelligence reasoning models, Ernie 4.5 and Ernie X1, on Sunday. These models are set to challenge the capabilities of DeepSeek's renowned models, offering superior performance at a fraction of the cost.

Ernie 4.5: Understanding the Nuances of Human Language

The latest iteration of Baidu's Ernie model, Ernie 4.5, boasts an enhanced ability to comprehend memes and satire, marking a significant advancement in natural language processing technologies.

Ernie X1: A Cost-Effective Powerhouse

Baidu's new reasoning model, Ernie X1, is touted to be on par with DeepSeek R1 but available at only half the price, promising to democratize access to high-end AI reasoning capabilities.

Looking Ahead: Ernie 5.0

Baidu has also teased the release of its next-generation AI model, Ernie 5.0, expected to hit the market in the second half of 2025, further cementing its position as a leader in AI innovation.

Following the announcement, Baidu's shares experienced a remarkable surge, climbing by 11.46% to 102.60 Hong Kong dollars per share at 7:16 am CET on Tuesday.