Baidu’s AI Ambitions Stumble as Ernie 5.0 Fails to Rally Investors
Baidu Inc. shares tumbled nearly 10% in Hong Kong trading Friday as its latest artificial intelligence offering failed to meet market expectations. The Chinese tech giant unveiled Ernie 5.0, a multimodal AI system capable of processing text, images, audio, and video content, alongside several product upgrades. Despite CEO Robin Li's vision of AI as a transformative productivity tool, the announcement did little to sustain the stock's 40% year-to-date rally.
The lukewarm reception reflects growing investor skepticism about AI valuations globally. Baidu's comprehensive update included enhanced search capabilities, a no-code app builder, and improved AI agents—yet these developments appeared insufficient against mounting concerns about the sector's capital intensity and competitive landscape.
