Baidu releases new AI model to compete with DeepSeek

Baidu has introduced a new AI reasoning model along with a major update to its AI chatbot, as competition in the industry intensifies. In a WeChat post on Sunday, Baidu announced the release of its X1 reasoning model, which it claims is as powerful as DeepSeek’s model but operates at a lower cost. The company also introduced Ernie 4.5, its latest foundation model.

Baidu has also made its AI chatbot, Ernie Bot, free for individual users earlier than planned. Previously, users had to pay a subscription to access the latest AI models. The company claims that Ernie 4.5 outperforms OpenAI’s GPT-4.5 in multiple tests, while X1 offers improved reasoning, planning, and problem-solving capabilities.

Baidu was one of the first Chinese companies to launch a generative AI platform in 2023. However, it now faces strong competition from companies like ByteDance, the owner of TikTok, and Moonshot AI, which have gained more users. A major disruptor in the industry has been DeepSeek, a startup that released a cost-efficient, open-source AI model in January, surprising many established players. Since then, several Chinese companies and government agencies have started using DeepSeek’s model, forcing other tech firms to catch up. Even Baidu has integrated DeepSeek’s R1 reasoning model into its search engine.

Other Chinese tech giants have also been stepping up their AI efforts. Tencent released a new AI model in February, claiming it responds to queries faster than DeepSeek, while also incorporating DeepSeek’s technology into its WeChat messaging platform. Alibaba has announced a $52 billion investment in AI and cloud computing over the next three years and recently launched an updated version of its AI assistant app powered by its open-source Qwen model. Baidu has also announced plans to make its Ernie AI models open-source from June 30, following DeepSeek’s approach.