Baidu Launches Upgraded AI Models as the Chatbot Race Evolves

The AI chatbot race is a sub-section of the broader AI race between countries and private and publicly traded companies alike. In the aftermath of DeepSeek’s release of its R1 model, the goal has somewhat changed. It’s not just about creating the most powerful and error-free chatbot; it’s about building it in the cheapest way possible. Today, Baidu (BIDU), China’s leading tech giant, has just launched two upgraded artificial intelligence models: ERNIE X1 and ERNIE 4.5. These latest versions mark another step forward in AI reasoning, understanding, and multimodal capabilities, setting Baidu up as a serious challenger in the competitive AI race.

A Battle for AI Supremacy

ERNIE X1 is a reasoning model designed to rival DeepSeek’s powerful R1 model. Baidu claims it offers the same level of performance but at half the cost, making it a highly efficient choice for businesses and developers. This model is packed with advanced abilities in understanding, planning, reflection, and evolution, making it the first deep-thinking AI that can use tools on its own.

Meanwhile, ERNIE 4.5 is Baidu’s latest foundation model, boasting enhanced language processing, memory, logic, and creative generation. It also has a “high EQ,” meaning it can understand internet memes, sarcasm, and satirical cartoons, a skill that many AI models struggle with.

Currently, Baidu holds 11.5% of China’s AI chatbot market, making it the country’s most widely used AI assistant. The company’s AI-driven businesses also contribute positively to its overall financial growth.

The AI chatbot industry is getting increasingly competitive, with Chinese startup DeepSeek making headlines for offering high-quality models at a fraction of the usual cost. Meanwhile, major U.S. players like OpenAI’s ChatGPT and Google’s (GOOGL) Gemini continue to dominate the global market. Baidu’s latest upgrades are part of its ongoing effort to stay ahead and secure its place in the AI revolution.

Tipranks’ Comparison Tool

Using Tipranks’ Comparison Tool, we gathered all publicly traded companies that developed an AI chatbot. Using the comparison tool, you can examine how these companies compare, who’s on the up and claims a strong position in the sector, and which company is not moving in the right direction.