Baidu's ERNIE Models Challenge AI Rivals Globally

Baidu has launched two advanced AI models, ERNIE 4.5 and ERNIE X1, poised to offer significant competition in the global AI landscape. ERNIE 4.5, a multimodal model, integrates text, images, audio, and video, and reportedly outperforms OpenAI's GPT-4.5 at just 1% of its cost, while ERNIE X1 focuses on reasoning capabilities and is comparable to DeepSeek R1 at half the price. The models are freely accessible to users to increase engagement and feedback. Baidu has also undertaken a CNY 10 billion notes offering and a share buyback to bolster financial stability amid competitive pressures. Baidu plans to open-source ERNIE 4.5 by the end of June, providing developers access to its source code. The announcement has positively impacted Baidu's stock performance, reflecting investor confidence in its AI advancements despite broader market uncertainties.