Baidu has launched two new AI models—Ernie X1 and Ernie 4.5—positioning them as cost-effective competitors to existing market leaders. Ernie X1, a reasoning model, is claimed to deliver performance on par with DeepSeek’s R1 at half the cost, showcasing enhanced capabilities in understanding, planning, reflection, and evolution. Ernie 4.5, a multimodal model, reportedly surpasses GPT-4.5’s performance while being more economical, demonstrating advanced language abilities and high emotional quotient. Baidu plans to integrate these models across its ecosystem, including Baidu Search, and will make them open-source by June 30, aiming to boost wider adoption.
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The company has also made its Ernie Bot freely available ahead of schedule, reflecting a strategic shift towards openness and cost-efficiency in AI development. These developments underscore China’s ambition to lead the global AI industry by 2030, intensifying competition with U.S. counterparts. Following these announcements, Baidu’s U.S.-listed shares experienced a slight uptick, although they have seen a 10% decline over the past year.
