Baidu Steps Up AI Game with New Model and Free Chatbot
Beijing, China – In a move to bolster its position in the rapidly evolving artificial intelligence landscape, Chinese internet search giant Baidu has released a new AI reasoning model. The company also announced it would make its AI chatbot services free to consumers, intensifying the already fierce competition in China’s tech sector.

Baidu’s strategic maneuvers come in response to the disruptive impact of DeepSeek, a startup whose open-source AI model has sent ripples through the industry. Baidu’s latest X1 reasoning model, according to the company, offers performance comparable to DeepSeek’s while maintaining a lower cost. Additionally, Baidu has unveiled a new foundation model, Ernie 4.5, and made its Ernie Bot AI chatbot free for individual users ahead of schedule.
Previously, access to Baidu’s advanced AI models was subscription-based. The company’s announcement indicates a shift in strategy aimed at capturing a larger user base. Ernie 4.5 is claimed to outperform OpenAI’s GPT-4.5 model in several benchmarks, showcasing enhanced capabilities in understanding, planning, reflection, and evolution, as stated by Baidu.
Baidu was among the first Chinese companies to launch a public generative AI platform in 2023. However, the company now faces substantial competition from rivals like ByteDance, the owner of TikTok, and Moonshot AI, both of which have gained significant traction. DeepSeek’s model, which offers comparable performance to ChatGPT at a reduced development cost, has further intensified the pressure on established players.
The integration of DeepSeek’s R1 reasoning model into Baidu’s search engine demonstrates the industry’s eagerness to adapt to the rapidly evolving AI sector. Tencent, the company behind WeChat, released a new AI model in February, claiming it could answer queries faster than DeepSeek, while incorporating its rival’s technology into its messaging platform. Alibaba has also invested heavily in AI and cloud computing, allocating 380 billion yuan ($52 billion) over three years.
Baidu has also announced plans to follow DeepSeek’s lead by making its Ernie AI models open-source from June 30, 2025, further solidifying its commitment to adapting to the evolving AI landscape.
Source: AFP