Core Insights - Baidu has significantly upgraded its core search platform with artificial intelligence, marking the largest overhaul in a decade to stay competitive against rivals like DeepSeek [1][3] - The focus on AI and the introduction of the Ernie Bot are seen as crucial steps for Baidu to maintain its market position amidst increasing competition from both established players and new entrants [2][5] Company Developments - Baidu's search business has faced some pressure, but the emphasis on AI and the Ernie Bot represents a proactive strategy [2] - The company has made substantial changes to its search product, allowing users to input over a thousand characters, ask questions in a conversational manner, and utilize voice, images, and files for queries [7] - Baidu has integrated AI chatbot features into its search product, enabling users to generate photos, text, and videos [7] Competitive Landscape - The search market is experiencing disruption, with users increasingly turning to AI services like ChatGPT and DeepSeek, as well as short video platforms like Douyin and Kuaishou that are entering the AI search space [3][4] - Baidu's stock performance has lagged behind competitors, with a 2.5% increase this year compared to Alibaba's 30.5% surge and Tencent's 20% rise [6] Strategic Positioning - Baidu's recent moves are described as both defensive and offensive, indicating a need to assert its position in the AI sector and not be perceived as secondary to competitors like Tencent [8]