Chinas Baidu soars 16% to hit 2-year highs amid positive signs for its AI business

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Baidu’s shares jumped after investors reacted positively to its growing AI business and improved analyst sentiment. The company is pushing hard into AI chips, cloud computing, and its Ernie Bot large language model to offset weakness in advertising. It also secured an AI-related deal with China Merchants Group and disclosed another offshore bond offering to support continued AI investment. Baidu used a developer conference to unveil new AI capabilities, including its latest reasoning model, Ernie X 1.1.

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