China's Baidu unveils low-cost AI models to compete with DeepSeek

To strengthen its position in the AI race, a leading Chinese tech giant Baidu has introduced two new artificial intelligence (AI) models, ERNIE X1 and ERNIE 4.5.

This move aims to maintain Baidu’s position to remain ahead of rival AI makers in the market.

The reasoning X1 model is designed to perform similarly to the DeepSeek model but at a significantly lower cost.

The Ernie 4.5 is claimed to outperform OpenAI's GPT-4.5 in several benchmark tests, while the X1 model excels in areas such as understanding, planning, reflection, and evolution.

Additionally, the company has announced that its Ernie Bot, an AI chatbot powered by its proprietary Ernie models, would be available for free to individual users ahead of schedule.

It should be noted that Baidu's new AI models come on the heels of DeepSeek, a Chinese AI startup, which has been making headlines with its AI models claimed to surpass leading US-based AI models at a much lower cost.

Hence, the success of DeepSeek R1 model has prompted other Chinese tech giants to respond with their own AI advancements.

Earlier in February, Tencent, WeChat’s parent company, introduced a new AI model, claiming it answered queries faster than DeepSeek’s model.

Baidu has also announced to make its Ernie AI models open-source by June 30, mirroring DeepSeek's strategy.

This move is expected to fuel further competition and innovation in China's AI market.