Baidu’s stock experienced a significant rally after reports emerged about its AI subsidiary DeepSeek developing a powerful new AI model that potentially rivals OpenAI’s GPT-4. The Chinese tech giant’s shares jumped over 5% following DeepSeek’s announcement of its X1 model, which demonstrates capabilities comparable to leading Western AI models. The X1 model reportedly shows superior performance in various benchmarks, including coding and mathematical reasoning tasks, positioning it as a formidable competitor in the global AI landscape. This development is particularly significant as it represents China’s growing presence in advanced AI technology, despite facing challenges from US chip restrictions. The news also highlights Baidu’s strategic investment in AI development, building upon its existing ERNIE foundation model. The company’s commitment to AI innovation has strengthened its market position and investor confidence, particularly in the context of the ongoing US-China tech competition. DeepSeek’s breakthrough comes at a crucial time when Chinese tech companies are working to establish themselves as major players in the global AI race, demonstrating their ability to develop sophisticated AI models despite international constraints. The success of the X1 model not only boosts Baidu’s market value but also signals China’s potential to compete effectively in advanced AI technology development, despite regulatory and geopolitical challenges.
Source: https://www.businessinsider.com/baidu-stock-price-deepseek-ai-tool-china-tech-ernie-x1-2025-3