TLDR
- Baidu (BIDU) stock climbed 9.06% ($8.50) to $102.32 on March 17, 2025
- The company launched two new AI models: ERNIE 4.5 and ERNIE X1
- Baidu claims its X1 model delivers the same performance as DeepSeek R1 at half the price
- X1 is a “deep-thinking reasoning model” capable of generating images, interpreting code, and making complex calculations
- Competition is intensifying among Chinese tech companies including Baidu, DeepSeek, and Alibaba in AI development
Shares of Chinese tech giant Baidu (BIDU) jumped 9.06% to close at $102.32 on Monday, March 17, 2025. This represented an $8.50 increase per share.
The stock climbed as high as $103.10 during trading. This was a notable performance on a day when broader markets declined.
The S&P 500 lost 0.2% while the Nasdaq Composite fell 0.4%. Baidu’s current market capitalization stands at $29 billion.
The sharp rise in Baidu’s stock price followed the company’s Sunday announcement of two new artificial intelligence models. These are called ERNIE 4.5 and ERNIE X1.
Half the price of DeepSeek R1
The X1 model has drawn particular attention from investors. Baidu made a bold claim that this model delivers “the same performance as DeepSeek R1 at only half the price.”
This statement is important in the competitive AI landscape. DeepSeek’s R1 model had previously made headlines for being trained at a fraction of the cost of American AI models.
Baidu described X1 as a “deep-thinking reasoning model.” The company states it can generate images, interpret code, read webpages, and perform advanced calculations.
The Chinese search giant holds the third most patents related to AI worldwide. These new models represent a step forward in the company’s extensive AI investments.
Strong competition worldwide
Baidu faces strong competition both in China and internationally. Chinese tech competitors include DeepSeek and Alibaba, with the latter spending billions on its AI development.
Alibaba recently revealed a more powerful AI agent. Another Chinese startup has developed an AI chatbot tool called Manus AU that is gaining attention in tech circles.
Baidu’s core business includes China’s top internet search engine. The company also operates cloud services and a self-driving car division.
The company has experienced some weakness in advertising revenue. This remains a core part of Baidu’s business model.
Impressive start to 2025
Baidu stock has gained 11% so far in 2025. This represents a rebound from previous lows after a multi-year decline.
However, Baidu’s stock performance lags behind some Chinese tech peers. U.S.-listed Alibaba stock has risen more than 65% year-to-date, while Tencent Holdings has gained 27%.
Despite recent challenges, Baidu appears positioned to leverage its AI innovations. The company continues to develop its self-driving technology and cloud infrastructure alongside its AI models.
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