Baidu has made a bold move in the AI industry by launching ERNIE 4.5 and ERNIE X1, offering advanced AI capabilities at a fraction of the cost of competing models.
Baidu Disrupts the AI Market
Chinese tech giant Baidu has introduced its latest foundation AI models, ERNIE 4.5 and ERNIE X1, directly challenging rivals such as OpenAI’s GPT-4.5 and DeepSeek. The company is offering these models for free to individual users through its ERNIE Bot, while also making them significantly more affordable for developers.
By integrating these models into its ecosystem, including Baidu Search and the Wenxiaoyan app, Baidu aims to enhance user experiences and expand AI accessibility.
ERNIE 4.5: Advancing Multimodal AI
ERNIE 4.5 is a next-generation multimodal foundation model that enhances language understanding, generation, reasoning, and memory. It also boasts improvements in hallucination prevention, logical reasoning, and code generation.
A standout feature of ERNIE 4.5 is its ability to interpret and integrate various content types, including text, images, audio, and video. The model also showcases an advanced understanding of internet memes and satirical cartoons, demonstrating its strong contextual awareness.
According to Baidu, ERNIE 4.5 surpasses GPT-4.5 in multiple benchmarks while being priced at just 1% of its cost.
ERNIE X1: A New Standard in Deep Thinking
ERNIE X1 is Baidu’s deep-thinking reasoning model designed for enhanced understanding, planning, reflection, and evolution. It is the company’s first multimodal deep-thinking reasoning model capable of tool use, excelling in areas such as Chinese knowledge Q&A, literary creation, and complex calculations.
X1’s capabilities include advanced search, document Q&A, image comprehension, AI-generated imagery, and webpage reading.
Competitive Pricing and Enterprise Applications
For enterprise users and developers, ERNIE 4.5 is available via APIs on Baidu AI Cloud’s Qianfan platform with competitive pricing structures. ERNIE X1 is expected to be accessible on the same platform soon.
Baidu has also announced its commitment to ongoing AI advancements, data center expansion, and cloud infrastructure investment, reinforcing its position as a major player in AI innovation.
The Future of AI Competition
With 2025 expected to be a pivotal year for AI development, Baidu’s aggressive pricing strategy and technological advancements have positioned it as a formidable competitor in the AI space. By offering high-performance AI models at significantly lower costs, the company is not only challenging established players but also democratizing access to cutting-edge AI technology.
This disruptive approach could have significant implications for global AI adoption and competition, especially as companies seek cost-effective solutions for AI-powered applications.
For more insights on AI advancements and their impact on global industries, check out our coverage on DeepSeek’s reflections on AI risks.
