Baidu, China’s largest internet search engine, announced it would offer its AI chatbot Ernie Bot free of charge starting April 1. The AI sector is a booming one.
Baidu announced in a WeChat posting that the AI service would be free for all users, on desktop and mobile platforms.
The move comes at a time when rival AI models are gaining traction on the market, including those of emerging Chinese startup DeepSeek.
The company announced the news on WeChat just hours after OpenAI CEO Sam Altman said that ChatGPT users will have unlimited access to GPT-5 free of charge, while paid subscribers will get access to more advanced functions.
Baidu announced on Friday that it will launch its next-generation AI model by the middle of June, and for the first time make it open source. This is similar to DeepSeek’s method.
In April, it will also offer a “Deep Search”, a free feature that offers enhanced reasoning and expert level responses.
Baidu stock jumps 12% after Ernie Bot announcement
Baidu’s decision of making Ernie Bot free to download appears to be a strategy to counter the competition from both domestic as well as global players.
DeepSeek’s R1 AI model, which was released in recent months, has attracted significant attention because it delivers performance comparable to US leaders but at a lower cost.
Baidu’s stock soared up to 12% following the announcement. It was last trading at 95 Hong Kong Dollars ($12.20) a share on Friday.
The Hang Seng China Enterprises Index has risen by 20% since January due to the company’s strong performance.
Chinese startups take on tech giants
Since ChatGPT debuted in late 2022 Chinese tech giants are racing to develop AI alternatives.
Baidu was the first company to launch a model of its own, before competitors such as Tencent and Alibaba.
Ernie Bot, however, has been unable to keep up with newer models, such as ByteDance’s Doubao. This model has performed better in terms of user engagement.
New AI startups like DeepSeek and Moonshot AI also make waves.
Kimi, the chatbot from Moonshot AI, was launched in late 2018 and was the third most visited AI chatbot in China during January, behind DeepSeek (also known as Doubao) and Aircpb.com, which tracks AI products.
Zhipu AI is another rising player, backed by Tencent, Alibaba and other government-backed companies. It has attracted attention for its strong ties to the government, but was recently added to the US Commerce Department Entity List due to alleged military ties, which it denies.
AI firms offer free services
Many leading AI companies have released free basic versions of chatbots. Premium features are available via subscription plans.
ChatGPT was initially offered as a free service, before a paid version for more advanced features was added.
Baidu charged users for Ernie Bot’s premium features, including AI-generated pictures, with monthly fees up to 59.9 Yuan ($8.20).
The chatbot has a large user base despite the competition. It is estimated that 430 million people will be using it by November 2024.
Baidu wants to regain its dominant position in China’s rapidly changing AI landscape by making Ernie Bot open source and free.
What is the impact of DeepSeek? Baidu and OpenAI provide free chatbots via Ernie Bot, and GPT-5 could be modified with updates.
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