Baidu launches 2 free AI models to rival DeepSeek in China

Photo : Reuters

Chinese internet company Baidu has introduced a new artificial intelligence (AI) model and made its AI chatbot free for users. The company launched its latest X1 reasoning model along with an upgraded version called Ernie 4.5. These models can now be used through its AI chatbot, Ernie Bot.

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Baidu decided to offer these models for free earlier than planned. Before this, people had to pay every month to use Baidu’s latest AI tools. This step comes as the AI market in China becomes more competitive, especially after a new company, DeepSeek, introduced a low-cost AI model in January.

Since DeepSeek’s entry, Chinese technology companies have been working hard to improve their AI systems. Baidu said that its X1 model works as well as DeepSeek’s model but at a lower cost. By making its AI tools free, Baidu hopes to get more users and strengthen its position in the AI industry.

Baidu was one of the first Chinese companies to introduce an AI chatbot in 2023. However, other companies like ByteDance, which owns TikTok, and Moonshot AI have gained more users, making it harder for Baidu to stay ahead.

China’s AI industry is growing fast, and competition is increasing. DeepSeek surprised the market by creating an AI model similar to ChatGPT from the United States but at a much lower cost. Many Chinese companies and government agencies have now started using DeepSeek’s technology.

Baidu itself has added DeepSeek’s R1 reasoning model to its search engine. Other major companies have also responded. In February, WeChat’s parent company, Tencent, introduced a new AI model that it claims answers questions faster than DeepSeek. However, Tencent is also using DeepSeek’s technology in its messaging app.

Alibaba, another big Chinese company, is also making big moves in AI. The company is working with Apple to develop AI for iPhones in China. Alibaba recently announced it will invest 380 billion yuan ($52 billion) in AI over the next three years. This month, Alibaba launched a new version of its AI assistant, powered by its open-source Qwen model.

Baidu has now decided to make its Ernie AI models open-source, just like DeepSeek. From June 30, developers and companies will be able to use and modify Baidu’s AI models. This is expected to further increase competition in China’s AI industry as companies try to become leaders in this fast-growing field.

March 16, 2025 11 a.m. 387

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