Baidu introduced Ernie X1, a reasoning model that can support tools such as advanced search, generation of AI images, and webpage reading.

Baidu's efforts comes on the heels of Chinese AI startup DeepSeek unveiling its AI model R1 in January and detailing in a paper how large language models, or LLMs, could be built on tight budgets and improved without human supervision. U.S. tech stocks plunged on Jan. 27, with Nvidia seeing around $589B in market cap erased on that day.

Chinese search engine Baidu has launched two new AI models — Ernie 4.5, the latest version of the company’s foundational model first released two years ago, as well as a new reasoning model, Ernie X1.

DeepSeek has emerged as the new standard for AI model makers to beat after launching R1 just before Christmas. As a reasoning model, R1 stood out for matching the capabilities of the best U.S.-made AI models, despite its maker only spending a small fraction of the cost its rivals had spent in training it.

Baidu, a major AI and internet company, has unveiled its latest foundation models: ERNIE 4.5, a native multimodal model, and ERNIE X1, a deep-thinking reasoning model. The company noted that this launch highlights its focus on advancing next-generation AI technologies.

Baidu also confirmed its plans to follow in DeepSeek’s footsteps by making its Ernie AI models open-source, starting on June 30.

Chinese tech giant Baidu has released AI models Ernie X1 and Ernie 4.5, intensifying competition with US AI companies.

China's Baidu said on Sunday it has launched two new artificial intelligence models, including a new reasoning-focused model that it said rivalled DeepSeek's model, as it vies to stand out in a fiercely competitive AI race.

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