The move comes after Chinese tech companies have been racing to enhance their AI platforms since DeepSeek, a start-up, disrupted the industry in January with its open-source, cost-efficient model.
In a WeChat announcement, Baidu introduced its latest X1 reasoning model, which the company claims matches DeepSeek’s performance at a lower cost, alongside a new foundation model, Ernie 4.5. Baidu also made its AI chatbot, Ernie Bot, free for individual users more than two weeks ahead of schedule. Previously, users had to pay a subscription fee to access the company’s advanced AI models through Ernie Bot.
Baidu stated that Ernie 4.5 "outperforms" OpenAI’s GPT-4.5 in "multiple benchmarks," while the X1 model boasts improved capabilities in understanding, planning, reflection, and evolution.
As one of China’s first companies to launch a public generative AI platform in 2023, Baidu now faces growing competition from rivals like ByteDance, owner of TikTok, and Moonshot AI, whose chatbots have gained significant user traction.
The consumer-facing AI sector has become fiercely competitive, particularly after DeepSeek’s breakthrough with a model that rivals U.S.-made ChatGPT in performance but is far more cost-effective. Since its release, Chinese companies and government agencies have rapidly adopted DeepSeek’s open-source model, prompting other tech firms to accelerate their own AI developments.
Baidu has already integrated DeepSeek’s R1 reasoning model into its search engine. Meanwhile, Tencent, owner of WeChat, released a new AI model in February, claiming it answers queries faster than DeepSeek’s, even as it incorporated its rival’s technology into its messaging platform.
Alibaba, which is collaborating with Apple to develop AI for iPhones in China, announced a 380 billion yuan ($52 billion) investment in AI and cloud computing over the next three years. The company also launched an updated version of its AI assistant app this month, powered by its open-source Qwen reasoning model.
In a strategic shift, Baidu has announced plans to make its Ernie AI models open-source starting June 30, following DeepSeek’s lead in promoting transparency and collaboration in the AI industry.