Baidu introduced Ernie X1, a reasoning model that can support tools such as advanced search, generation of AI images, and webpage reading.

KEY TAKEAWAYS Chinese tech giant Baidu said it has launched two artificial intelligence models, including the ERNIE X1, which it claims delivers the same performance as DeepSeek R1 “at only half the price.

DeepSeek, a rising Chinese AI startup, has disrupted the industry by introducing AI models it claims rival, or even surpass, leading US-based alternatives — while maintaining significantly lower costs. This has injected fresh momentum into the global AI race, prompting established players like Baidu to step up their game.