Baidu Unveils Innovative AI Models

Baidu has launched two groundbreaking AI models, Ernie 4.5 and Ernie X1, which promise superior performance at more competitive prices. Ernie X1 is designed to deliver results comparable to the Chinese chatbot DeepSeek, but at just half the cost, stirring significant reactions in the stock market.

This development raised questions about the efficiency of US tech companies, notably resulting in a 17% decline in Nvidia's stock. Baidu, renowned for its leadership in autonomous driving and its Apollo robotaxi division, is building on its earlier success with the Ernie chatbot, first introduced in 2023. The new models reportedly outperform Western counterparts on benchmarks, further solidifying Baidu's position in the AI landscape.

With a focus on affordability and performance, Baidu aims to integrate these innovations across its platforms, challenging existing giants and reshaping the competitive dynamics within the tech industry.