Baidu unveiled its latest AI advancements with the launch of Ernie 4.5 Turbo and Ernie X1 Turbo at a developer event in Wuhan. These models come equipped with significant enhancements like improved cloud integration and reasoning capabilities, aimed at reducing AI hallucinations. The release is Baidu's strategic move to keep pace with competitors such as DeepSeek, Alibaba's Quark, and ByteDance's Doubao, who currently enjoy larger user bases.
In addition to the new model features, Baidu showcased its ability to create and manage digital AI agents for varied enterprise applications. A significant technical milestone was achieved with the establishment of a 30,000-unit Chinese-made processor cluster. This move is seen as a direct response to mitigate the impact of U.S. restrictions on AI chip exports, demonstrating Baidu’s focus on leveraging domestic resources to stay resilient in the high-stakes AI industry.
This launch builds on Baidu's previous initiatives, such as the March 2025 release of Ernie 4.5 and X1 models, which were noted for their cost-effectiveness against DeepSeek's offerings. Additionally, Baidu's decision to offer the Ernie Bot for free aims to accelerate its monetization strategy amid competitive pressures in the AI sector. According to Insider Monkey, following these announcements, Baidu's shares in Hong Kong rose by up to 4%, reflecting investor confidence in the company's forward-looking strategies.