AI competition is brutal - just ask Baidu
Matt V
March 17, 2025
AI MODELS
Baidu has launched Ernie X1, a new AI model designed for reasoning, conversations, and problem-solving, as it looks to compete with rising challengers like DeepSeek R1.
Alongside this, the company upgraded its main AI system to Ernie 4.5 and made its chatbot services, including X1, free to use earlier than planned.
Baidu, was the first in China to roll out ChatGPT-style chatbot, but competitors like ByteDance and Moonshot AI quickly gained popularity.
Meanwhile, open-source models like Alibaba’s Qwen and DeepSeek have become developer favourites.
Here’s what you should know:
Baidu’s Ernie X1 is its latest AI model, built to compete with DeepSeek R1.
Ernie 4.5, which Baidu says beats GPT-4.5, will be open-source from June 30.
Cloud revenue is up, but ad sales remain weak amid China’s economic slowdown.
AI wars are getting WAY too personal
Baidu says Ernie 4.5 outperforms OpenAI’s GPT-4.5 in text generation, based on industry tests.
In a big shift, the company will open-source its Ernie AI models from June 30, likely in response to DeepSeek’s success.
It has also integrated DeepSeek’s R1 model into its search engine.
On the financial side, Baidu’s cloud revenue jumped 26% in Q4, driven by AI demand.
But those gains were offset by weak ad sales as China’s economy slows.
The company also finalised its $2.4 billion takeover of YY Live, unlocking $1.6 billion for AI and cloud investments.
“We’re better than GPT-4.5”, says every AI company ever.