Baidu introduced Ernie X1, a reasoning model that can support tools such as advanced search, generation of AI images, and webpage reading.

DeepSeek has emerged as the new standard for AI model makers to beat after launching R1 just before Christmas. As a reasoning model, R1 stood out for matching the capabilities of the best U.S.-made AI models, despite its maker only spending a small fraction of the cost its rivals had spent in training it.

On 6 March, Chinese tech giant Alibaba unveiled its latest AI reasoning model, claiming it outperforms similar models developed by OpenAI and the startup DeepSeek. The announcement sent Alibaba's Hong Kong-listed shares soaring by 8% by the end of the day and contributed to gains in the Hang Seng China Enterprises Index.