Chinese Tech Giant Baidu Launches New AI Model to Compete with DeepSeek

Chinese search engine giant Baidu has launched a new artificial intelligence (AI) model, stepping up the competition in China’s fast-growing AI sector. According to a report by AFP, Baidu has now made its AI chatbot services freely available to individual users.

China’s leading tech firms are rushing to upgrade and release more advanced AI platforms after startup DeepSeek disrupted the market in January with its high-performing, open-source, and cost-efficient AI model.

In a WeChat post, Baidu announced the launch of its latest reasoning model, X1, which the company claims delivers performance on par with DeepSeek’s offerings—but at a lower cost. Baidu also unveiled a new AI model based on its Ernie 4.5 framework.

Free Access and Improved Capabilities

Baidu has made its flagship Ernie Bot freely accessible to individual users two weeks earlier than scheduled. Previously, users were required to subscribe in order to access the company’s latest AI models through Ernie Bot.

According to Baidu, Ernie 4.5 has outperformed OpenAI’s GPT-4.5 in “multiple standard tests.” Meanwhile, the new Ernie X1 model demonstrates improved comprehension, planning, reflection, and development capabilities.

Baidu, headquartered in Beijing, was one of the first Chinese companies to launch a public-facing generative AI platform in 2023. However, in recent months, competitors like ByteDance (parent company of TikTok) and Moonshot AI have gained significant user traction.

A Competitive Race in China’s AI Landscape

Baidu now faces fierce competition in the consumer AI sector. DeepSeek in particular has shaken up the industry both domestically and internationally, offering models that rival OpenAI’s ChatGPT in performance but with significantly lower development costs.

Since DeepSeek’s rise, both private companies and local government agencies across China have scrambled to adopt its open-source AI model into their workflows. Baidu has already integrated DeepSeek’s R1 reasoning model into its own search engine.

Meanwhile, in February, Tencent—owner of the WeChat messaging platform—released a new AI model that it claims responds to queries faster than DeepSeek, although it also incorporated some of DeepSeek’s technology into its ecosystem.

Also in February, Alibaba, which has partnered with Apple to develop AI for Apple devices in China, announced a massive investment plan. The tech giant said it will allocate ¥380 billion (approximately $52 billion) over the next three years into AI development and cloud computing.

Earlier this month, Alibaba launched a new version of its AI assistant app powered by its open-source Qwen reasoning model.

Baidu to Open-Source Its AI Models by June

In a significant move, Baidu announced that it plans to follow DeepSeek’s example by open-sourcing its Ernie AI models by June 30. This signals a broader industry trend in China toward greater transparency and collaborative development in AI, driven by open-source innovation.

As the battle for AI supremacy in China intensifies, Baidu’s latest developments are part of a larger push to reclaim its edge in a rapidly evolving and highly competitive market.