Chinese internet search giant Baidu released a new artificial intelligence reasoning model Sunday and made its AI chatbot services free to consumers as ferocious competition grips the sector.

Technology companies in China have been scrambling to release improved AI platforms since start-up DeepSeek shocked its rivals with its open source and highly cost-efficient model in January.

In a post on WeChat, Baidu announced the launch of its latest X1 reasoning model—which the company claims performs similarly to DeepSeek’s but for lower cost—and a new foundation model, Ernie 4.5.