Baidu's Leap into the Future with New AI Models

In a significant leap forward, Baidu Inc. experienced an 11% surge in its stock value this Tuesday, following the announcement of two innovative artificial intelligence reasoning models. These models, unveiled on Sunday, are set to redefine the landscape of AI technology by offering capabilities that rival those of DeepSeek, but at a fraction of the cost.

Ernie 4.5 and Ernie X1: The New Contenders

The first of these models, Ernie 4.5, is an upgraded version of the model released two years prior. Baidu claims that this model has the unique ability to comprehend memes and satire, marking a significant advancement in AI's understanding of human culture and humor. The second model, Ernie X1, introduces a new reasoning capability that Baidu asserts is on par with DeepSeek R1, yet available at half the price. This development not only showcases Baidu's commitment to innovation but also its dedication to making advanced AI technologies more accessible.

Looking Ahead: Ernie 5.0

Baidu's forward momentum doesn't stop here. The tech giant has also announced plans to release the next iteration of its AI model, Ernie 5.0, in the latter half of 2025. This announcement has further fueled investor enthusiasm, as evidenced by the 11.46% rise in Baidu's shares to 102.60 Hong Kong dollars each at 7:16 am CET.