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China puts American AI industry on notice yet again with Ernie X1, Baidu's new open-source reasoning model
Chinese tech giant Baidu has released open-source AI models Ernie X1 and Ernie 4.5, intensifying competition with US AI companies.
OnSaturday, Baidu released Ernie X1, a reasoning model it says "delivers performance on par with DeepSeek R1 at only half the price." Baidu's new releases come as Silicon Valley reckons with the cost of AI models, largely spurred by the latest drops from DeepSeek, a Chinese startup launched by hedge fund High Flyer. "One thing we learned from DeepSeek is that open-sourcing the best models can greatly help adoption," Robin Li, Baidu's CEO, said on an earnings call in February.
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