A Look At Baidu’s Explosive Growth

Baidu Inc. (NASDAQ: BIDU) has seen a 25% return year-to-date, largely due to its four-layered AI architecture and its PaddlePaddle deep-learning framework. The Ernie Bot, an AI application integrated with Baidu’s large language model capabilities, has seen early success in various sectors, including enterprise, finance, software, education and online travel. Baidu’s AI Cloud has seen 8% year-over-year growth in the first quarter, and the company expects the Ernie Bot to further drive revenue growth in the online marketing sector. Baidu’s early-mover advantage in the generative AI and LLM markets position the company favorably, with high barriers to entry expected to lead to a concentrated market with two to three major players.