The Chinese technology company Baidu has launched two new artificial intelligence models including a model that it claims can rival DeepSeek.
The Beijing-based group has said its new model, called Ernie X1, delivered “performance on a par with DeepSeek R1 at only half the price”. The X1 also had “stronger understanding, planning, reflection and evolution capabilities”, it claimed.
The Chinese AI start-up DeepSeek made waves in January after it unveiled its R1 reasoning model that it said used lower-cost chips and less data than its American rivals. Its launch upset investors in the United States, with nearly $1 trillion wiped off the value of major tech and infrastructure stocks in one day. The market has broadly recovered since, though doubts remain around whether the likes of Google and OpenAI can retain their technical edge.
Baidu was the first in China’s technology sector to launch a chatbot modelled on OpenAI’s ChatGPT, but since then rival models from companies such as ByteDance and Moonshot AI have gained more popularity.
The new models represent Baidu’s latest attempt to get ahead in the AI race. The tech company has also upgraded its flagship foundation model to Ernie 4.5, which now has more advanced language ability, as well as improved understanding, generation, logic and memory.
The company also claimed that Ernie 4.5 had a “high EQ”, or emotional intelligence, which means it can more easily understand network memes and satirical cartoons.
Baidu has said that it will make Ernie AI models “open-source” from June 30, so that developers around the world can use, study and modify it for their own purposes.
Beijing has recently expressed stronger support for the Chinese tech industry, a notable shift in approach compared with a few years ago when national regulators cracked down on some of the biggest companies in the sector.
Last month President Xi met leading technology entrepreneurs and chief executives, including Jack Ma, the co-founder of Alibaba, the ecommerce company, who has largely been out of public view in recent years. Xi told the pro-business rally to “show their talent” and be confident in the power of China’s model and market.
The company, which is the biggest internet search business in China, reported a 26 per cent rise in “cloud”, or internet hosting, revenue in its December quarter. Weak advertising sales amid broader economic weakness in the country meant that overall revenue fell 2.4 per cent, but its net profit doubled from 2.6 billion yuan the previous year to 5.19 billion yuan.
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