- Key Points
- Baidu released two new artificial intelligence models on Sunday, including one with reasoning capabilities that it said rivaled DeepSeek’s R1 model.
- According to Kai Wang, a senior equity analyst for Morningstar, Baidu’s stock jump is likely a delayed market reaction to the new models as the company vies to regain leadership in China’s AI space.
Investors appeared favourable to the release of two new AI models over the weekend, as is clear from the fact that Chinese tech veteran Baidu shares were trading up to 10.7% in Asia on Tuesday. On Sunday, Baidu unveiled the two brand-new AI models: the most recent version of its basic “Ernie” model and a logic model, according to the company, competing with the R1 model of Dipsek. These claims cannot be verified by Experssepaper. A logic model is a large language model designed to process complex problems for humans in a similar way; breakdown smaller pieces, and many approaches are considered before generating reactions.
Morningstar’s senior equity analyst Kai Wang believes BAIDU’s stock surge is likely a “delayed response” to new models as the company competes for a leading position in China’s AI market. He said, “Stock has not received as much love as other hyperscalers, but still it is a platform that benefits from maximum AI demand, as enterprises will need to help someone with hosting, scaling and computing power,” he said.
A hyperscaler refers to a major cloud computing company that provides large-scale data centres for computing storage and demands.
According to a report by Reuters, Baidu said on Sunday that its Ernie X1 Reasoning model has “strong understanding, planning, reflection and development capabilities” and “only offers a performance with Deepsek R1 at half price.” Chinese AI Start-up Dipsek raised the AI industry in January when it released its R1 Open-SOS Reasoning model, making the model of American competitors rival, despite claims, it was produced at a fraction of cost and with low powerful chips.
According to V Sun, chief analyst of Artificial Intelligence