Baidu has launched new low-cost AI models, including the X1 reasoning model and an upgraded Ernie 4.5, to stay competitive in China’s AI race. The X1 model rivals DeepSeek but at a lower cost, while Ernie 4.5 reportedly outperforms GPT-4.5 in benchmarks.
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With DeepSeek disrupting the market with its open-source models, Baidu is responding by making Ernie AI open-source by June 30. Meanwhile, Tencent and Alibaba are also ramping up AI investments, intensifying China’s tech competition.