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Baidu Strikes Back at Alibaba in AI Race. Both Stocks Gain. - Barron's

1. Baidu offers its Ernie AI chatbot free from April 1, boosting competition. 2. New features include deep search, advanced processing, and multilingual capabilities. 3. Baidu missed partnering with Apple for AI, benefiting Alibaba instead. 4. DeepSeek's competitive AI model increases general market confidence in Chinese tech. 5. Baidu and Alibaba's stocks are rising amid this intensifying AI competition.

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FAQ

Why Bullish?

Baidu's move to offer free services may attract more users, potentially increasing revenue. Previous instances show that competitive pricing and features can drive stock performance positively.

How important is it?

The article discusses Baidu's strategies in the competitive AI market, which directly impacts BIDU's market outlook. Given the rising competition, valuation shifts in other tech stocks indicate a collective market response.

Why Short Term?

The announcement will likely have immediate effects on user engagement and stock price. Similar moves from competitors have historically resulted in short-term market responses.

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