Baidu, the Chinese internet search giant, will offer its advanced AI chatbot, Ernie Bot, for free starting April 1. This includes premium features like AI painting, and the service will be available to both mobile and desktop users. Baidu’s move comes amid rising competition in the AI market, especially following the success of startup DeepSeek’s AI models.
In response, OpenAI’s CEO Sam Altman announced that ChatGPT users will have free access to its upcoming GPT-5 model, although paid subscribers will receive a more advanced version. The announcement further intensified the AI race, with Baidu revealing that it plans to launch the next generation of its AI model by June, which will also be open-sourced like DeepSeek’s models. Additionally, Baidu will offer its Ernie Bot’s Deep Search function for free in April, which will enhance reasoning capabilities and provide expert-level responses.
This competition has heightened pressure on Baidu and other major players in China. DeepSeek’s recent R1 AI model has impressed with its performance, competing with U.S. tech giants at a lower cost. Baidu’s stock surged 12% following these announcements, showing the company’s optimism.
Although Baidu was a frontrunner in China’s AI scene after launching its chatbot just months after ChatGPT, it has struggled to gain as many active users as competitors like ByteDance’s Doubao. Other startups, like DeepSeek and Moonshot AI, have gained traction, with Moonshot’s chatbot Kimi becoming the third-most visited AI service in China by January 2024.
Zhipu AI, another promising Chinese AI company backed by Tencent and Alibaba, has also emerged as a key player. Despite being added to the U.S. Commerce Department’s “Entity List” for alleged military ties, Zhipu denies these accusations.
As more companies provide free basic chatbot services, including ChatGPT and Ernie Bot, the competition among AI giants is heating up. Baidu’s decision to make its premium services available at no charge further signals the rapidly evolving AI landscape in China.
