Baidu's Ernie 4.5 and X1: Transforming AI Through Multimodal Capabilities

Key Takeaway

Competition among global AI providers is intensifying, particularly in China, where firms aim to match Western technology while offering competitive pricing. DeepSeek’s introduction of the R1 model, which rivals leading proprietary models at lower costs, has prompted a reevaluation of pricing strategies. In response, Baidu launched two new foundation models, Ernie 4.5 and Ernie X1, accessible for free to individual users via the Ernie Bot platform. This approach, which includes affordable enterprise pricing, signals a potential shift in AI monetization strategies, positioning Baidu’s models as direct competitors to OpenAI’s GPT series.

Published: 2025-03-17 20:22:06

The competition among global AI providers is intensifying as companies strive to deliver more advanced foundation models at increasingly competitive prices.

This trend is particularly noticeable in the Chinese market, where domestic tech firms are working to achieve technological parity with their Western counterparts while offering pricing structures that could reshape market dynamics.

DeepSeek recently illustrated this trend by disrupting the market with its R1 model, which reportedly delivers performance comparable to leading proprietary models at a fraction of the cost—prompting industry players to reevaluate their value propositions and pricing strategies.

Now, Baidu has introduced two new foundation models that enhance its AI capabilities: Ernie 4.5, a native multimodal foundation model, and Ernie X1, a deep-thinking reasoning model—both now freely available to individual users through the Ernie Bot platform.

This release comes as industry observers note that pricing strategies may become as crucial as technical capabilities in driving market adoption.

Consequently, Baidu’s strategy of providing free consumer access while keeping enterprise pricing significantly lower than competitors’ rates indicates a potential shift in how AI capabilities could be monetized in the future.

Baidu is offering free access to consumers ahead of its previously announced April 1 date—enterprise users and developers can access Ernie 4.5 via APIs on Baidu AI Cloud’s Qianfan platform, with Ernie X1 expected to be available soon.

Furthermore, Baidu positions these models as direct competitors to OpenAI’s GPT series.