Baidu Inc. has launched a new artificial intelligence model capable of articulating its reasoning, aiming to regain its competitive edge against rising competitors like DeepSeek.
Baidu’s latest model, named Ernie X1, offers enhanced capabilities designed to rival the functionality of DeepSeek R1. DeepSeek had previously caught the attention of Silicon Valley with its exceptional performance at a significantly lower development cost. In response, Baidu claims its Ernie X1 excels in tasks involving daily conversations, complex calculations, and logical deductions, aiming to match or surpass DeepSeek’s performance.
Alongside the Ernie X1, Baidu has introduced updates to its flagship foundation model, Ernie 4.5. The company made a strategic decision to provide free access to the Ernie X1 model, accelerating its release timeline by several weeks. Baidu’s move to provide open access is likely a reaction to the increased popularity of rival models from ByteDance Ltd. and Moonshot AI, which have gained traction since Baidu’s initial foray with a ChatGPT-like chatbot.
The competition from open-source models, like those from Alibaba’s Qwen and DeepSeek, has further prompted Baidu to make its Ernie AI models open-source starting June 30. This shift marks a significant change in Baidu’s strategy as it adapts to the competitive pressures within the global AI community.
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Baidu claims that its new Ernie 4.5 outperforms OpenAI’s GPT 4.5 in text generation, as supported by various industry benchmarks. The integration of Baidu’s R1 model into its primary search engine highlights the company’s focus on leveraging AI innovations to enhance its core services.
Moreover, Baidu’s recent financial activities underscore its commitment to advancing AI development. The company reported a 26% increase in cloud revenue during the December quarter, attributed mostly to services aiding developers in need of computational power, although this was partly offset by weaker advertising revenues due to the economic climate in China.
Notably, Baidu completed a significant business acquisition with the purchase of the YY Live platform from Joyy Inc. for $2.1 billion. This acquisition freed $1.6 billion from escrow accounts, funds that Baidu plans to invest further in AI and cloud infrastructure, indicating a robust commitment to the future of AI technologies.
Baidu’s introduction of the Ernie X1 model represents a strategic endeavor to maintain its position in the rapidly evolving AI landscape. By making its AI models open-source and integrating AI into its core business areas, Baidu not only shows a flexible approach to innovation but also its readiness to confront new challenges in the AI sector.
