Chinese search engine Baidu has launched two new AI models — Ernie 4.5, the latest version of the company’s foundational model first released two years ago, as well as a new reasoning model, Ernie X1.

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

Baidu's efforts come on the heels of Chinese AI startup DeepSeek unveiling its AI model R1 in January and detailing in a paper how large language models, or LLMs, could be built on tight budgets and improved without human supervision. U.S. tech stocks plunged on Jan. 27, with Nvidia seeing around $589B in market cap erased on that day.

China's Baidu said on Sunday it has launched two new artificial intelligence models, including a new reasoning-focused model that it said rivalled DeepSeek's model, as it vies to stand out in a fiercely competitive AI race.

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.

Chinese internet search giant Baidu released a new artificial intelligence reasoning model Sunday and made its AI chatbot services free to consumers as ferocious competition grips the sector.