Baidu Unveils New AI Reasoning Model and Offers Free Chatbot Services Amid Intense Industry Competition
Baidu, the Chinese internet search powerhouse, announced the launch of its latest artificial intelligence reasoning model on Sunday, introducing enhanced AI chatbot services to consumers at no cost as competition heats up in the sector. This latest move follows significant market shifts prompted by startup DeepSeek, which took the industry by surprise earlier this year with its open-source, cost-effective AI model.
In a post shared on WeChat, Baidu unveiled its new X1 reasoning model, claiming performance on par with DeepSeek while also being more affordable. The company also introduced its new foundation model, Ernie 4.5, to bolster its AI offerings.
Starting earlier than planned, Baidu made its AI chatbot, Ernie Bot, free for individual users, eliminating a previously required subscription fee for access to its advanced AI models. The company stated that Ernie 4.5 surpasses the capabilities of OpenAI’s GPT-4.5 model in various performance assessments, while Ernie X1 boasts “enhanced capabilities in understanding, planning, reflection, and evolutionary reasoning.”
Baidu was among the first to introduce a generative AI platform in China in 2023, but has since faced escalating competition from rivals like ByteDance, the parent company of TikTok, and the emerging player, Moonshot AI, both of which have seen significant increases in user adoption.
The competition is further intensified by DeepSeek’s innovative model, which has reportedly established itself as a strong alternative comparable to Western offerings like ChatGPT, yet at a far lower development cost. As a result, numerous Chinese firms and local government entities have rapidly embraced DeepSeek’s open-source technologies, pushing established tech companies to enhance their own offerings.
Baidu itself has incorporated DeepSeek’s R1 reasoning model into its search engine, demonstrating its commitment to remaining competitive. Recently, Tencent, the owner of WeChat, claimed to have developed a new AI model that processes queries faster than DeepSeek’s technology while integrating its rival’s features into its messaging platform. Additionally, Alibaba announced plans to invest 380 billion yuan (approximately $52 billion) in AI and cloud computing over the next three years, also unveiling an updated version of its AI assistant app, which harnesses its own open-source Qwen reasoning model.
Looking ahead, Baidu has indicated its intention to follow DeepSeek’s example by making its Ernie AI models available as open-source software starting June 30, further positioning itself within the rapidly evolving AI landscape.
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