On September 9, Baidu (NASDAQ:BIDU) announced an upgrade to its AI reasoning system, X1.1, which achieves a 35% improvement in knowledge accuracy and enhanced instruction-following capabilities. This advancement positions Baidu competitively against major rivals like OpenAI’s GPT-5 and Alphabet’s Gemini 2.5 Pro. The AI system is accessible to businesses via Baidu Cloud, with individual users expected to utilize it through various platforms. During a recent developer event, CTO Wang Haifeng emphasized the importance of AI innovation for driving industry efficiency and delivering practical benefits to users. Following the announcement, BIDU shares increased by 0.4% on Tuesday, with a notable year-to-date rise of nearly 30% and over 32% in the past year. The stock saw heightened trading activity on Monday, surging 6.6%, alongside a spike in call option volume. Overall, Baidu is making significant strides in the competitive AI landscape.
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