On November 11, Baidu (BIDU), the online marketing and cloud services provider, introduced a new AI model called ERNIE-4.5-VL-28B-A3B-Thinking. The model is designed to process both images and text and is being released as open-source software. Baidu claims its model performs better than OpenAI’s (PC:OPAIQ) GPT-5 and Alphabet’s (GOOGL) (GOOG) Gemini 2.5 Pro on specific tasks that involve charts, documents, and image-based questions.
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According to Baidu, the model uses 28 billion total parameters, but only 3 billion are active during each use. That setup helps lower computing costs while keeping performance high. Baidu also notes that the model runs 2 to 3 times faster than others with a similar structure and needs less memory. It is available under the Apache 2.0 license, which allows companies and developers to use it for both personal and commercial projects.
Meanwhile, BIDU shares dropped 0.28% on Tuesday, closing at $131.95.
Focus on Visual Reasoning and Speed
The ERNIE model targets specific tasks where it can handle both images and written content at the same time. It can zoom in on parts of an image, analyze details, and use those insights to form full answers. Baidu researchers say they used a large amount of training data that focused on visual tasks. They also applied reinforcement learning techniques to improve how the model solves harder problems. The company claims that the model performs well in visual reasoning, science, and math tasks, as well as video understanding.
This release puts Baidu in a stronger position among Chinese tech firms developing AI. It also adds new pressure to U.S.-based leaders like OpenAI, Anthropic (PC:ANTPQ), and Alphabet, which tend to keep their models closed and offer access only through paid services or APIs.
China Ramps Up Open-Source AI Efforts
The ERNIE model is part of a broader trend in China. More tech companies are turning to open-source releases as a means of competing with U.S. firms. Recent data shows that China now leads the U.S. in downloads of open-source AI models. Firms such as Baidu, Alibaba Group (BABA), and DeepSeek are moving quickly to release high-performing models that are also easier and cheaper to use.
By releasing models like ERNIE under open licenses, these companies allow more developers and enterprises to build their own tools without needing approval or access to proprietary systems. Analysts say this approach helps China grow its AI presence in regions where U.S. tech firms face more rules or limits.
Baidu plans to highlight the new model and other AI updates at its Baidu World 2025 event on November 13 in Beijing. The showcase comes as the company looks to expand its role in China’s growing AI industry and offer tools that can run on more hardware types and cloud platforms.
While it is not clear how ERNIE compares in every area to GPT-5 or Gemini 2.5 Pro, it may give developers a more efficient way to run advanced models on their own systems. For now, Baidu’s release shows that open-source AI continues to play a larger role in shaping global tech trends.
Is Baidu Stock a Buy?
On the Street, Baidu boasts a Moderate Buy consensus rating. The average BIDU stock price target stands at $134.86, implying a 2.21% upside from the current price.
