Baidu expands AI dominance with ERNIE 4.5 and X1, driving innovation at competitive prices

Baidu, Inc. (NASDAQ: BIDU and HKEX: 9888) has reinforced its leadership in artificial intelligence with the launch of ERNIE 4.5 and ERNIE X1, two models designed to push the boundaries of multimodal learning and deep-thinking reasoning. As part of this expansion, the company has made ERNIE Bot free for individual users ahead of schedule, accelerating public access to its AI-driven chatbot.

The launch signals a broader shift in Baidu’s AI strategy, positioning it as a direct competitor to industry leaders such as OpenAI, Google DeepMind, and Anthropic. With ERNIE 4.5 focusing on multimodal intelligence and ERNIE X1 specializing in deep reasoning, the company is aggressively pursuing AI development that spans search, cloud computing, and enterprise applications.

What Makes ERNIE 4.5 a Next-Generation Foundation Model?

As Baidu’s latest foundation model, ERNIE 4.5 is built to understand and generate content across multiple modalities, including text, images, audio, and video. Unlike earlier iterations, this model integrates advanced collaborative optimization techniques, allowing seamless transitions between different content types.

One of the most significant advancements in ERNIE 4.5 is its enhanced logical reasoning capabilities, reducing AI hallucinations while improving contextual awareness. By incorporating FlashMask Dynamic Attention Masking and a Heterogeneous Multimodal Mixture-of-Experts approach, the model refines its ability to process complex instructions while maintaining accuracy.

Compared to leading competitors, ERNIE 4.5 delivers high-performance benchmarks at a fraction of the cost. The model is priced at just 1% of GPT-4.5, making it an accessible alternative for businesses and developers seeking cost-effective AI solutions.

How Does ERNIE X1 Redefine Deep-Thinking AI?

Unlike traditional foundation models, which primarily focus on content generation, ERNIE X1 introduces a new standard for deep-thinking reasoning AI. Designed for complex problem-solving, ERNIE X1 enhances decision-making by integrating advanced planning, logical analysis, and self-evaluation techniques.

Baidu’s deep-thinking AI model supports a range of intelligent tool applications, from code interpretation and academic research to business intelligence and AI-powered content creation. With features like TreeMind mapping and progressive reinforcement learning, ERNIE X1 adapts dynamically to user interactions, improving efficiency in research and analytical tasks.

As Baidu’s first multimodal reasoning model capable of tool use, ERNIE X1 is positioned as a competitor to emerging AI reasoning frameworks developed by Google DeepMind and Microsoft-backed OpenAI. The model’s focus on structured thinking aligns with the industry’s growing demand for AI systems that can perform complex computations beyond simple text generation.

Why Did Baidu Make ERNIE Bot Free Ahead of Schedule?

Initially set to become free for individual users on April 1, ERNIE Bot has been made publicly accessible ahead of schedule, reinforcing Baidu’s commitment to expanding AI availability. The decision reflects a broader industry trend in which AI leaders are increasingly offering free-tier access to attract users and scale adoption.

This move also aligns with Baidu’s strategy of embedding ERNIE 4.5 and ERNIE X1 into its ecosystem, including Baidu Search and the Wenxiaoyan app. By integrating AI-driven interactions into its core platforms, Baidu is enhancing user experiences while reinforcing its dominance in China’s AI sector.

For enterprise users and developers, ERNIE 4.5 is now available via Baidu AI Cloud’s Qianfan Foundation Model Platform, with API pricing starting at RMB 0.004 per thousand tokens for input and RMB 0.016 per thousand tokens for output. Meanwhile, ERNIE X1 will soon be accessible through the same platform at significantly reduced costs compared to competing models.

How Is Baidu Positioning Itself in the AI Arms Race?

Baidu’s aggressive push into foundation models and deep-thinking AI aligns with a broader global race for AI supremacy. As China’s leading AI firm, Baidu is investing heavily in artificial intelligence research, cloud infrastructure, and data processing capabilities to compete with Western AI giants.

By leveraging low-cost, high-performance AI models, the company is making a strategic move to capture enterprise clients and developers who seek scalable AI solutions without incurring premium costs. Baidu’s emphasis on multimodal AI, logical reasoning, and tool integration is expected to drive further adoption of its AI offerings in enterprise and consumer applications.

The company’s continued investment in AI accessibility, including the free availability of ERNIE Bot, is also expected to accelerate the widespread adoption of generative AI in China. As the AI landscape evolves, ERNIE 4.5 and ERNIE X1 represent Baidu’s most ambitious step toward establishing a global AI footprint while ensuring affordability for developers and businesses.