BAIDU, the Chinese internet search giant, has intensified the burgeoning artificial intelligence (AI) battle in China by releasing a new reasoning model and making its Ernie Bot chatbot free to individual users.
The move comes amid fierce competition, with rivals scrambling to match the cost-effectiveness and performance of recent AI breakthroughs.
The Beijing-based company unveiled its X1 reasoning model, claiming it offers performance comparable to DeepSeek’s, but at a lower cost, alongside the upgraded Ernie 4.5 foundation model.
Baidu asserted that Ernie 4.5 “outperforms” OpenAI’s GPT-4.5 in several benchmark tests, while X1 boasts “enhanced capabilities” in understanding and planning.
The decision to offer Ernie Bot without subscription fees, more than two weeks ahead of schedule, underscores Baidu’s determination to gain ground in a market where it faces stiff competition from companies such as ByteDance and Moonshot AI.
The AI sector in China has been galvanised since January, when start-up DeepSeek launched an open-source model that challenged established players with its cost-efficiency.
This development prompted a surge in adoption by Chinese companies and government agencies. Baidu itself has integrated DeepSeek’s R1 reasoning model into its search engine.
The competitive landscape has seen a flurry of activity. Tencent, the operator of WeChat, released a faster AI model in February, while Alibaba, which is collaborating with Apple on AI for iPhones in China, announced a ¥380bn (£41.8bn) investment in AI and cloud computing over the next three years.
Alibaba also recently launched an updated AI assistant app powered by its Qwen model.
Baidu has further signalled its intent to compete by announcing plans to make its Ernie AI models open-source from June 30, following DeepSeek’s lead. This move reflects the growing trend towards open-source AI in China, as companies seek to accelerate innovation and democratise access to advanced technology.
-BTS Media
