Chinese tech giant Baidu has released a new Artifical Intelligence reasoning model that has caused their shares to rise by 10.7%.
A reasoning model is a league language model designed to process complex problems by breaking them down into smaller pieces and considering multiple approaches before generating responses.
Baidu’s new model is called Ernie and according to the media release announcement, it is set to deliver “performance on par with DeepSeek R1 for only half the price”.
In the announcement, Baidu announced both their foundational model, Ernie 4.5 and thinking reasoning model Ernie 4.5, which are freely accessible to users.
“The launch of ERNIE 4.5 and ERNIE X1 marks a significant milestone in pushing the boundaries of multimodal and reasoning models, offering advanced capabilities at a more accessible price point,” the announcement said.
“It also underscores Baidu's commitment to continued investment in developing smarter and more powerful next-generation foundation models.”
The announcement marks a twist in the competition between Chinese tech giants as DeepSeek overtook Baidu earlier this year in the stock market, despite Baidu being one of the first to release a Chat-GPT-like chatbot.
