Baidu shares gained 1% after reports its Ernie AI assistant surpassed 200 million monthly active users. The Beijing-based search giant is integrating its model deeper into flagship products, turning the assistant into a hub for third-party services like Trip.com bookings and Meituan food delivery.

This milestone positions Baidu as a formidable domestic contender in China's generative AI race. Rival Alibaba's Qwen assistant recently passed 100 million users, while OpenAI's ChatGPT leads globally with an estimated 810 million monthly active users. Baidu is expanding Ernie's scope to include health, legal advice, and high-fidelity media creation.

Investor optimism reflects hopes for monetizing this massive user base, though fierce global competition persists. The company's stock performance hinges on translating user growth into sustainable revenue streams as it battles for dominance in the crowded AI market.