Baidu has launched two new AI models, including its first reasoning-focused model, in an effort to regain its standing in China's competitive AI market. Despite these advancements, experts indicate Baidu is playing catch-up, as its earlier AI chatbot, Ernie, has not gained significant traction against rivals like DeepSeek and Alibaba. The shift towards open-source models reflects a strategic change for Baidu, which hopes to leverage its extensive user data to remain competitive.