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Chronicles

The story behind the story

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Baidu releases Ernie X1, an AI model that articulates its reasoning similarly to DeepSeek R1, and upgrades its flagship foundation model to Ernie 4.5, both free

The Ernie X1 model by China's internet search leader works similarly to DeepSeek R1 — which shocked Silicon Valley …

Bloomberg

Context & Ripple Effects

Baidu had already been iterating on its model line, including the Ernie 4.0 Turbo upgrade and a stated plan to open-source the next-generation Ernie 4.5. The free release of a reasoning-oriented X1 alongside 4.5 turns that product cadence into a more aggressive competitive positioning move.

The pairing matters because it puts a reasoning model and a flagship foundation model into the market together, rather than treating advanced reasoning as a separately gated capability.

First-order effects

  • Developers and users can access Baidu's Ernie X1 and Ernie 4.5 without a price barrier, while Baidu broadens the appeal of its Ernie portfolio beyond its prior model upgrades.
  • Baidu directly positions its reasoning offering against DeepSeek R1-style capabilities, making reasoning quality a visible dimension of competition among Chinese AI platforms.

Second-order effects

  • Rival model providers face greater pressure to differentiate on capability, distribution, or access terms when Baidu offers both a general-purpose flagship and a reasoning model for free.
  • Enterprise and developer buyers gain more leverage in model selection: they can evaluate advanced reasoning alongside foundation-model performance before committing to paid services or integrations.

Third-order effects

  • If free access to frontier-style models persists, model providers may find it harder to use base-model access as the primary monetization layer and may compete more through distribution, integrations, and higher-value services.
  • The release is part of a shift toward reasoning capability becoming a standard feature of model portfolios rather than a premium niche; the durability of that shift depends on whether providers can sustain the underlying serving costs.

The trend: China's AI-model race is moving toward bundled, low-friction access to both general-purpose and reasoning capabilities, increasing buyer power and shifting differentiation beyond the base model.

Discussion

  • @lemmk Karsten Lemm on bluesky
    We need an AI that keeps track of all the AI model names.  —  Also: Ernie?  Is Bert next? [embedded post]
  • @baidu_inc @baidu_inc on x
    We've just unveiled ERNIE 4.5 & X1! 🚀 As a deep-thinking reasoning model with multimodal capabilities, ERNIE X1 delivers performance on par with DeepSeek R1 at only half the price. Meanwhile, ERNIE 4.5 is our latest foundation model and new-generation native multimodal model. [vi…
  • @baidu_inc @baidu_inc on x
    ERNIE 4.5 achieves collaborative optimization through joint modeling of multiple modalities, exhibiting comprehensive improvements in understanding, generation, reasoning and memory, along with notable enhancements in hallucination prevention, logical reasoning, and coding [image…
  • @xh_lee23 Li Zexin on x
    The success of Deepseek has spurred Chinese tech companies to race for more powerful yet cheap AI models. This fierce homegrown competition could end up fueling China's AI innovation so fast that Europe and the US might struggle to keep up.
  • @zjasper666 Jasper on x
    AI models are getting commoditized quickly. We're entering the era when everyone has access to the best AI without paying $200/month.
  • @stevehou0 Steve Hou on x
    “ERNIE X1 delivers performance on par with DeepSeek R1 at only half the price.” It's like solar panels, but for AI models. China doesn't stop grinding and the floor is the limit.
  • @gavriel_cohen Gavriel Cohen on x
    Despite the name implying it—this is not a GPT 4.5 level model. The second tweet in the thread compares ERNIE-4.5 to GPT-4.5 across 15 benchmarks and shows that ERNIE-4.5 scores an average of 79.6 vs 79.14 for GPT-4.5. Problem is the benchmarks in the average are cherry-picked.
  • @doodlestein Jeffrey Emanuel on x
    These announcements are coming at a wild rate now. By open sourcing so much of its very clever work, DeepSeek has dramatically accelerated AI research for China and the rest of the world. And a bit of competitive rivalry among China' tech giants probably didn't hurt, either.
  • @bgurley Bill Gurley on x
    US AI companies should spend 100% of their time developing and innovating vs hanging out in DC begging for protection from competition. It's a bad look that unveils a clear lack of self confidence.
  • @kimmonismus @kimmonismus on x
    China killed it: GPT-4.5 niveau for 1% of its price! Ernie 4.5 Just a few months ago, I wouldn't have thought that possible. But China is overtaking the USA in some areas, such as price-performance ratio. Ernie 4.5, Baidou's LLM, achieves comparable quality in the well-known
  • @scobleizer Robert Scoble on x
    @UziObi_ ... Reinforcement learning is getting better I hear. Plus China is playing big pricing games. Baidu is gonna use these models to make all its services more profitable.
  • @baidu_inc @baidu_inc on x
    For enterprise users and developers, ERNIE 4.5 is now accessible via APIs on Baidu AI Cloud's MaaS platform Qianfan, while ERNIE X1 is set to be available on the platform soon. ERNIE 4.5: Input and output prices start as low as $0.55 per 1M tokens and $2.2 per 1M tokens,
  • @baidu_inc @baidu_inc on x
    @verioussmith We've announced our plan to open source the ERNIE 4.5 model series in the next few months! https://x.com/...
  • @business @business on x
    China's Baidu released a new artificial intelligence model that articulates its reasoning, in an apparent bid to regain momentum against up-and-coming rivals like DeepSeek. https://www.bloomberg.com/...
  • @scobleizer Robert Scoble on x
    Here it is. Half the price of @deepseek_ai's R1. We have an AI price war folks!
  • @baidu_inc @baidu_inc on x
    For individual users, we're also planning to expand the integration of ERNIE 4.5 and X1 across Baidu's ecosystem, including Baidu Search, the Wenxiaoyan APP, and other offerings. Stay tuned!