How Baidu (BIDU) Is Positioning Its AI Against OpenAI, Google, and DeepSeek

Baidu, Inc. (NASDAQ:BIDU) is one of the AI Stocks In The Spotlight For Investors. On September 10, the company released an updated version of its proprietary reasoning showcasing capabilities similar to advanced AI systems from DeepSeek, OpenAI and Google.

According to Baidu chief technology officer Wang Haifeng, third-party AI benchmarks reveal that the firm’s X1.1 reasoning model had surpassed the performance of DeepSeek-R1, while it matched OpenAI’s GPT-5 and Google’s Gemini 2.5 Pro.

Wang further said that the model has shown a 34.8 per cent improvement in knowledge accuracy, as well as enhanced agentic capabilities and instruction compliance based on a “mixed reinforcement learning” process.

According to South China Morning Post, the closed-source X1.1 model is now available to corporate clients through Baidu’s cloud computing platform. Meanwhile, individual users can gain access through Baidu’s Ernie Bot website and app.

“From reasoning improvements to slow, deep thinking and multimodal abilities, [our] model’s performance and efficiency have increased.” -Wang.

Baidu, Inc. (NASDAQ:BIDU) is a Chinese internet giant and AI pioneer, known for its noteworthy investments in artificial intelligence technology and its position as the dominant search engine within the country.

While we acknowledge the potential of BIDU as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.