Hong Kong-listed shares of Baidu Inc (HK:9888) surged on Tuesday after the company unveiled two advanced artificial intelligence models—ERNIE 4.5 and ERNIE X1. These innovative platforms are designed to outpace leading AI competitors while offering significant cost advantages.
Innovative AI Models Set New Benchmarks

ERNIE 4.5:Dubbed a “native multimodal” model, ERNIE 4.5 is engineered to process and integrate various data types, including text, images, audio, and video. Baidu claims that this model outperforms OpenAI’s GPT-4.5 on multiple benchmarks—all while being priced at just 1% of its American competitor’s rate.

ERNIE X1:This model represents Baidu’s first dedicated reasoning framework, tailored for complex problem-solving that requires deep logical analysis. Baidu asserts that ERNIE X1 delivers performance on par with DeepSeek R1 but at only half the price, positioning the company strongly in the competitive AI landscape.

Market Reaction
Baidu’s robust announcements have resonated with investors:

Hong Kong Shares:The company’s Hong Kong-listed shares jumped 10.8% to HK$102 as of 05:26 GMT, marking their highest level since mid-October 2024.
U.S. Shares:Meanwhile, U.S.-listed shares on Nasdaq closed 9.1% higher at a five-month peak, reflecting strong market confidence in Baidu’s AI-driven growth strategy.

Outlook and Strategic Impact
Baidu’s strategic investment in advanced AI technology underlines its commitment to remaining at the forefront of China’s rapidly evolving digital landscape. As the company continues to innovate, these breakthroughs could not only enhance its competitive edge but also drive significant growth in market share—both domestically and internationally.

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Conclusion
Baidu’s unveiling of ERNIE 4.5 and ERNIE X1 marks a pivotal moment in the company’s AI strategy, driving its shares to five-month highs both in Hong Kong and on Nasdaq. With its advanced AI models setting new industry benchmarks and delivering cost-effective solutions, Baidu is well-positioned to capitalize on the growing demand for artificial intelligence technologies. Investors should stay tuned to further developments and consider leveraging reliable financial data through FMP APIs to monitor this dynamic market landscape.