China’s Baidu released a new AI reasoning model on Sunday, and made its AI chatbot services free, signaling intensifying competition in China’s AI sector.
This move follows the disruptive entry of start-up DeepSeek in January, which surprised major players with its open-source, cost-effective model.
Chinese tech firms are now racing to upgrade their AI platforms to keep pace.
Baidu announced via WeChat that its new X1 reasoning model—which it claims matches DeepSeek’s performance at a lower cost—and its updated Ernie 4.5 foundation model are now available through its AI chatbot Ernie Bot.
In a bold move, Baidu made both models free to use, dropping the previous monthly subscription requirement and releasing them over two weeks ahead of schedule.
Baidu, one of the first Chinese firms to launch a generative AI platform in 2023, now faces intense competition from rivals like ByteDance and Moonshot AI, whose chatbots have attracted more users.
The pressure has escalated with DeepSeek’s rise, as the startup disrupted both Chinese and global markets with a low-cost model that rivals ChatGPT in performance.
Baidu’s latest moves—releasing powerful new models and making them free—reflect its urgent push to stay competitive in the rapidly evolving consumer-facing AI space.
