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Baidu’s actions jump 10% after the launch of the new open source AI models


Zhejiang, China – March 16, 2023: a view of the Ernie Bot logo, a Chatbot service developed by the Chinese search engine Baidu, March 16, 2023.

Long Wei | Future publication | Getty images

Chinese technology giant actions Baidu On Tuesday, 10.7% in Asia was quoted, since investors seemed to react positively to the launch of two new AI models during the weekend.

Baidu launched two new artificial intelligence models on Sunday, including the latest version of its fundamental “Ernie” model and a new reasoning model that, he said, he rivaled with Deepseek’s R1 model. CNBC cannot verify these statements.

TO Reasoning Model It is a large language model designed to process complex problems in a similar way to humans, the breakdown of the embedding in smaller pieces and considering multiple approaches before generating answers.

According to Kai Wang, a senior capital of Morningstar, the leap of shares is probably a “delayed reaction” to the new models, since Baidu competes to recover a leadership position in the Chinese artificial intelligence space.

“The action has not received as much love and the other hyperscalers, but it is still a platform that benefits from a greater demand for AI since companies will need someone to help them with accommodation, scale and computer power,” he said.

A hyperscaler refers to an important cloud computing company that provides massive data centers to calculate storage and demands.

Baidu said on Sunday that his Ernie X1 reasoning model “offers pair performance with Deepseek R1 only half the price” and has “capacities of understanding, planning, reflection and evolution”, according to a Reuters report.

The new Deepseek China company overturned the AI ​​industry in January when it launched its R1 open source reasoning model, which rivaled the models of US competitors, despite the statements that occurred to a fraction of the cost and with much less powerful chips.

Deepseek quickly beat Baidu in China’s artificial intelligence career, despite the fact that the company is one of the first in the market to launch a chatbot similar to Chatgpt with its bot ernie, according to Wei Sun, principal artificial intelligence analyst in counterpoint research, which indicated other technological giants such as other technological giants such as Alibaba And the Bytedonce has also advanced.

“Baidu’s competitiveness depends on whether its new models really meet the promised yield and cost advantages,” said Sun, however, he said that the price of AI, particularly in the China market, is very fluid.

The latest Baidu models, similar to the DEPEEEK R1, have been launched as open source, which means that the source code is freely available on the open network for a possible modification and redistribution.

This represents a change in Baidu’s previous strategy to focus on proprietary models.

“When issuing its models, Baidu seeks to position its technology once again as a standard of the industry, strengthening its influence on the AI ​​community and expand its market share,” said Sun.



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