ERNIE 4.5 Turbo and X1 Turbo: Setting New Standards in Cost and Capability
In the rapidly transforming realm of technology, Baidu is strategically refining its approach by unveiling the ERNIE 4.5 Turbo and ERNIE X1 Turbo models. This move highlights a significant emphasis on both cost-effectiveness and the enhancement of capabilities, which are at the very heart of artificial intelligence advancement.
At the annual Baidu Create 2025 conference held in Wuhan, the company placed a spotlight on a series of innovations meticulously designed to democratize access to AI and champion the deployment of practical applications across a spectrum of industries. This initiative is a clear reflection of Baidu’s deep-seated commitment to fulfilling the escalating global demand for impactful AI solutions that can truly make a difference.
As enterprises around the world increasingly seek greater returns on their investments in AI, and as developers actively explore alternatives to platforms dominated by Western companies, Baidu is stepping forward with models that promise enhanced functionality while also offering significantly reduced costs. This strategic approach is specifically designed to encourage broader adoption of AI and to foster a culture of innovation within the sector.
Addressing an audience of over 5,000 developers and technology experts at the conference, Baidu’s Co-founder and CEO, Robin Li, articulated the company’s overarching vision with clarity: ‘Our releases aim to empower developers to build the best applications — without having to worry about model capability, costs or development tools.’ This statement serves to underscore Baidu’s commitment to breaking down barriers to entry and to nurturing a dynamic and thriving AI ecosystem where innovation can flourish.
The introduction of ERNIE 4.5 Turbo and ERNIE X1 Turbo represents Baidu’s strategic response to the dynamic large language model (LLM) market. These models are engineered to provide cutting-edge performance while addressing the critical issue of cost, making AI more accessible to a wider range of users. This accessibility is paramount to democratizing AI and ensuring that its benefits are widely distributed.
Both the ERNIE 4.5 Turbo and ERNIE X1 Turbo models boast multimodal capabilities, enabling them to process a variety of data types, including text, images, and other formats. This versatility allows for more comprehensive and integrated AI applications. Significantly, these models are priced much lower than their predecessors, reflecting Baidu’s commitment to affordability. Lowering the cost barrier is crucial for attracting a broader user base and encouraging experimentation.
Specifically, ERNIE 4.5 Turbo, tailored for general-purpose applications, offers input costs at just RMB 0.8 per million tokens and output costs at RMB 3.2 per million tokens. This pricing strategy positions ERNIE 4.5 Turbo as an economically viable option for a wide array of AI tasks, making it an attractive choice for developers and businesses alike.
Baidu asserts that its pricing is a mere fraction of that charged for GPT-4.5 (approximately 0.2%) and only 40% of the cost associated with the competing DeepSeek V3 model. This aggressive pricing strategy underscores Baidu’s ambition to capture a significant share of the AI market by offering compelling value to its users.
In addition to its cost advantages, ERNIE 4.5 Turbo incorporates improvements in logical reasoning, coding capabilities, and reduced hallucination rates. Hallucination, in the context of AI, refers to the generation of false or misleading information. By minimizing these errors, Baidu aims to enhance the reliability and trustworthiness of its AI models. Reducing hallucination is essential for building user confidence in AI-driven applications.
ERNIE X1 Turbo, on the other hand, is designed for deep thinking and chain-of-thought reasoning. This involves the AI model breaking down complex problems into a series of manageable steps, rather than providing immediate, potentially superficial answers. This approach is particularly useful in applications that require nuanced analysis and decision-making. The ability to perform chain-of-thought reasoning is a key differentiator for advanced AI models.
Priced at RMB 1 per million tokens for input and RMB 4 per million tokens for output, ERNIE X1 Turbo offers a 50% cost reduction compared to its earlier versions. This cost-effectiveness, combined with its advanced reasoning capabilities, makes ERNIE X1 Turbo an attractive option for businesses and researchers engaged in complex problem-solving. This affordability makes advanced AI accessible to a wider range of users and use cases.
Both ERNIE 4.5 Turbo and ERNIE X1 Turbo are readily available through ERNIE Bot, Baidu’s AI chatbot platform. This accessibility underscores Baidu’s commitment to lowering barriers to entry in the AI sector, enabling a broader audience to experiment with and benefit from these advanced technologies. By making these models easily accessible, Baidu is fostering a culture of experimentation and innovation.
According to Robin Li, multimodality is poised to become a defining feature of future foundation models. He predicts that the market for purely text-based models will diminish, while the demand for multimodal models will continue to grow. This perspective guides Baidu’s strategic investments in developing versatile AI solutions that can handle diverse data types and application scenarios. The shift towards multimodality reflects the growing need for AI to understand and process information from various sources.
Innovation Beyond Models: Digital Humans and Multi-Agent Collaboration
Baidu is extending its innovation beyond LLMs by actively developing AI applications, notably in the areas of digital humans and collaborative agent systems. These advancements are designed to enhance user experiences and streamline complex tasks, pushing the boundaries of what’s possible with AI.
One of the standout innovations is the Huiboxing platform, which allows users to create personalized digital avatars from short videos (as little as two minutes in length). This technology simplifies the creation of lifelike digital representations, opening up new possibilities for virtual interactions and personalized content. The ease of creating digital avatars is a significant step forward in democratizing virtual identity.
Robin Li has described AI digital humans as ‘one of the most exciting breakthrough applications in 2025,’ highlighting their potential to transform communication, entertainment, and various other sectors. Digital humans have the potential to revolutionize how we interact with technology and each other.
Further advancing the field of multi-agent technology, Baidu has introduced Xinxiang, a ‘general super agent’ platform that utilizes multiple AI agents working collaboratively to tackle complex user tasks. This system is designed to mimic human teamwork, where different agents specialize in different aspects of a problem. The concept of AI agents working together is a powerful paradigm for solving complex problems.
Xinxiang currently supports 200 distinct task types, including knowledge analysis, travel planning, education, and office workflows. Baidu has ambitious plans to expand Xinxiang’s capabilities to encompass more than 100,000 task types, further solidifying its position as a versatile AI assistant. This expansion will make Xinxiang an even more valuable tool for users in various domains.
Robin Li also emphasized how AI can democratize programming capabilities, making them accessible to a global audience. He noted that while there are nearly 30 million programmers worldwide, the global population is approximately 8 billion. By lowering the barriers to entry, AI can empower individuals without formal programming training to create and innovate. This democratization of programming will unlock a wave of innovation from individuals who previously lacked the technical skills to participate.
Cangzhou OS, jointly developed by Baidu Wenku and Baidu Drive, also made its debut at the conference. This content operating system powers AI Note, the industry’s first multimodal AI note-taking tool. AI Note allows users to generate notes, mind maps, and quizzes directly from educational videos, streamlining the learning process. This integration of AI into content creation and consumption is a game-changer for education and productivity.
The popularity of Baidu’s content platforms is evident in the user statistics. Baidu Wenku now boasts 40 million paying users and 97 million monthly active users, while Baidu Drive’s AI features have surpassed 80 million monthly active users. These figures underscore the growing demand for AI-powered productivity tools. The high user engagement on these platforms validates Baidu’s strategy of integrating AI into its existing services.
Open Platforms and the Future of AI Applications
Baidu is reinforcing its dedication to technology development and AI integration by launching the AI Open Initiative through the Baidu Search Open Platform. This initiative provides developers with valuable opportunities for traffic generation, monetization, and access to AI services. Opening up its platform to developers is a key strategy for fostering innovation and expanding the AI ecosystem.
Another significant announcement is Baidu’s support for the Model Context Protocol (MCP), a standardized interface designed to connect external services with LLMs. MCP facilitates seamless communication between different AI components, promoting interoperability and innovation. Standardization is crucial for enabling seamless integration and collaboration in the AI space.
Robin Li likened MCP to a ‘universal socket’ for AI, emphasizing its integration across Baidu’s platforms, including the Qianfan Foundation Model Platform, Baidu Search, e-commerce services, and Baidu Drive. This standardization simplifies the development and deployment of AI applications. The analogy of a ‘universal socket’ highlights the importance of MCP as a foundational component for AI integration.
In an effort to further stimulate innovation, Baidu unveiled the third ERNIE Cup Innovation Challenge, doubling its prize pool to RMB 70 million. This competition encourages developers and researchers to explore new applications of AI technology. Investing in innovation challenges is a proven way to attract talent and accelerate the development of new AI solutions.
The company has also committed to training an additional 10 million AI professionals over the next five years, addressing the growing skills gap in the AI industry. This initiative will help to ensure that there are enough skilled workers to support the continued growth of the AI sector. Addressing the skills gap is essential for ensuring the long-term sustainability of the AI industry.
The conference’s central theme, ‘Models Lead, APPs Rule’, encapsulates Baidu’s emphasis on practical technology adoption. The event covered a range of topics, including agent-based AI systems and DeepSeek technology, underscoring Baidu’s vision for the future. This theme highlights the importance of translating advanced AI models into real-world applications.
Robin Li concluded with a powerful statement: ‘Without practical applications, neither advanced chips nor sophisticated models hold value. While there will be a multitude of models, it is the applications that will truly dominate in the future. Applications are where true power lies.’ This sentiment highlights Baidu’s focus on developing AI solutions that address real-world problems and create tangible value for users. The emphasis on practical applications is a key differentiator for Baidu’s AI strategy.
In summary, Baidu’s strategic moves with the ERNIE 4.5 Turbo and ERNIE X1 Turbo models, coupled with its focus on multimodal capabilities, digital humans, and open platforms, position the company as a key player in the evolving AI landscape. Its commitment to affordability, accessibility, and practical applications is likely to drive significant innovation and adoption in the years to come. The emphasis on training and developer support further solidifies Baidu’s commitment to fostering a vibrant and sustainable AI ecosystem. Baidu’s comprehensive approach, encompassing model development, application innovation, and ecosystem building, positions it for continued success in the AI era. The focus on affordability and accessibility ensures that the benefits of AI are widely distributed, while the commitment to training and developer support fosters a vibrant and sustainable ecosystem. Baidu’s vision for the future of AI is one where practical applications dominate, creating tangible value for users and driving innovation across various industries. The strategic emphasis on multimodal capabilities reflects the growing need for AI to understand and process information from diverse sources, while the development of digital humans and collaborative agent systems pushes the boundaries of what’s possible with AI. The commitment to open platforms and standardization promotes interoperability and collaboration, enabling seamless integration of AI into existing systems and workflows. By addressing the skills gap in the AI industry, Baidu is ensuring that there are enough skilled workers to support the continued growth and development of the AI sector. Baidu’s overall strategy is well-positioned to capitalize on the growing demand for AI solutions and to drive innovation in the years to come.