Baidu has launched two new AI models—ERNIE 4.5 and ERNIE X1—in a bold move to stay ahead in China’s competitive AI race. Unlike OpenAI, which charges for premium access, Baidu is making its AI free for individual users.
But is free AI really “free”? And what does this tell us about the future of AI competition?
Why This Move Matters
China’s AI market is heating up. Alibaba, Tencent, and DeepSeek are all racing to build advanced AI, while OpenAI and Google dominate globally. By offering its AI models at no cost to individuals, Baidu is doing something different:
🔹 ERNIE 4.5 – An improved large language model with enhanced reasoning, memory, and emotional intelligence.
🔹 ERNIE X1 – A multimodal AI competing directly with DeepSeek’s R1, processing text, images, and potentially video—all at half the cost of its rivals.
On paper, it sounds like a win for users. But what’s Baidu’s long game?
The Strategy Behind "Free" AI
1️⃣ User Adoption & Market Control – By removing cost barriers, Baidu can flood the market with its models, securing a dominant position in China. Once users are reliant, monetisation can follow.
2️⃣ Data & Localisation – More users mean more data. Since Baidu operates under China’s strict data regulations, this approach strengthens its AI with country-specific insights that competitors like OpenAI can’t access.
3️⃣ Competitive Edge Over Global AI Leaders – OpenAI and Google charge for premium models. By offering free access, Baidu positions itself as the AI provider of the people—at least in China.
The Real Question: Will This Model Work?
Free AI sounds great, but:
❗ Will businesses trust Baidu’s AI given China’s strict data laws?
❗ How does ERNIE 4.5 compare to OpenAI’s GPT-4 Turbo in real-world tasks?
❗ If Baidu starts monetising later, will free users feel misled?
The AI race isn’t just about who builds the best models, it's about who controls the ecosystem.
Bottom Line: What You Need to Know Before Using Baidu’s AI
If you’re considering using Baidu’s ERNIE 4.5 or ERNIE X1, here are the key factors to keep in mind:
🔹 Training Data & Biases – These models have been trained primarily on Chinese data sources, which means they excel in Mandarin language processing but may have limitations when handling global content. Like all AI models, they inherit biases from their training data.
🔹 Data Localization – Baidu’s AI models are developed and hosted in China, following strict local data regulations. Users should be aware of China’s cybersecurity laws if they plan to use these models for business or sensitive tasks.
🔹 Free for Now – Individual users can access these models for free, which makes them an attractive option. However, long-term pricing strategies could change as Baidu looks to monetise AI more effectively.
Baidu’s AI models are a strong step forward in China’s AI development, but for users outside of China, understanding the training data, regulatory environment, and potential biases is crucial before integrating them into workflows.
At Frozen Light, we are dedicated to shining light on AI developments with clarity and facts so you can stay informed about the future of AI. 🚀
Where Can You Read More?
🔗 China's Baidu Takes on DeepSeek With New AI Model
At Frozen Light, we are dedicated to shining light on AI developments with clarity and facts—so you can stay informed about the future of AI. 🚀