Baidu launches AI model that rivals DeepSeek in performance and cost

Chinese internet search giant Baidu released a new artificial intelligence reasoning model yesterday and made its AI chatbot services free to consumers as ferocious competition grips the sector.

Technology companies in China have been scrambling to release improved AI platforms since start-up DeepSeek shocked its rivals with its open source and highly cost-efficient model in January.

In a post on WeChat, Baidu announced the launch of its latest X1 reasoning model - which the company claims performs similarly to DeepSeek's but for lower cost - and a new foundation model, Ernie 4.5.

Baidu also made its AI chatbot Ernie Bot free for individual users more than two weeks ahead of schedule.

Previously, users had to pay a subscription to access the company's latest AI models via Ernie Bot.

Ernie 4.5 "outperforms" US-based OpenAI's GPT-4.5 model in "multiple benchmarks," while Ernie X1 features "enhanced capabilities in understanding, planning, reflection, and evolution," Baidu said.

The Beijing-based company was, in 2023, one of China's first to roll out a generative AI platform publicly, but rival chatbots from companies such as TikTok owner ByteDance and Moonshot AI have since gained more users.

Baidu faces stiff competition in the consumer-facing AI sector where startup DeepSeek shook up the industry at home and abroad with a model that performed comparably to competitors such as US-made ChatGPT, but cost much less to develop.

Since then, Chinese companies and local government agencies have rushed to incorporate DeepSeek's open-source model into their work, while other technology companies have been playing catch-up.

Baidu itself has integrated DeepSeek's R1 reasoning model into its search engine. It has also announced plans to follow DeepSeek's lead by making its Ernie AI models open-source from June 30.

In related news, China's securities watchdog will step up monitoring fake information in the stock market and work with police and cyberspace regulators to crack down on those who disseminate false news, which is being made easier by AI, official media reported.

Regulators will "hit early, hit hard, and hit at the heart" of the issue, the Securities Times said. AI has become a new tool for creating and spreading misleading information to con investors or manipulate stocks, luring investors with the prospect of getting rich quickly, the Shanghai Securities News said.

AGENCE FRANCE-PRESSE, REUTERS