Baidu, China’s leading internet search giant, introduced a new artificial intelligence reasoning model on Sunday and announced that its AI chatbot services would now be free for consumers. This move comes as fierce competition intensifies in the AI sector.
Chinese tech companies have been racing to launch enhanced AI platforms following the disruptive rise of the startup DeepSeek, whose open-source and cost-effective model surprised competitors when it launched in January.
In a post on WeChat, Baidu revealed its latest X1 reasoning model, which the company claims offers performance comparable to DeepSeek’s, but at a lower cost. Additionally, Baidu unveiled a new foundation model, Ernie 4.5.
Baidu also made its Ernie Bot chatbot freely accessible to individual users, more than two weeks ahead of schedule. Previously, access to the company’s advanced AI models via Ernie Bot required a subscription.
According to Baidu, Ernie 4.5 outperforms OpenAI’s GPT-4.5 model in several benchmarks, while Ernie X1 boasts enhanced abilities in understanding, planning, reflection, and evolution.
Although Baidu was among the first in China to launch a generative AI platform in 2023, it now faces fierce competition from rival chatbots developed by companies like ByteDance (the owner of TikTok) and Moonshot AI, which have rapidly gained users.
Baidu is also playing catch-up in the consumer-facing AI sector, where DeepSeek has revolutionized the industry with a highly cost-effective model that rivals international products like OpenAI’s ChatGPT. In response, Chinese companies and government agencies have been quick to adopt DeepSeek’s open-source model, integrating it into their operations. Baidu itself has incorporated DeepSeek’s R1 reasoning model into its search engine.
In February, WeChat owner Tencent introduced an AI model it claimed could answer queries faster than DeepSeek’s, though it has also integrated DeepSeek’s technology into its messaging platform. That same month, Alibaba, which has partnered with Apple to develop AI for the tech giant’s phones in China, announced plans to invest 380 billion yuan (about $52 billion) in AI and cloud computing over the next three years.
Additionally, Baidu has announced its intention to follow DeepSeek’s example by making its Ernie AI models open-source by June 30.
