WASHINGTON: Baidu announced its AI chatbot services will be free as competition in the industry intensifies.
Ernie Bot, featuring AI painting, will be free for desktop and mobile users starting April 1.
Just before Baidu’s announcement, OpenAI CEO Sam Altman unveiled GPT-5’s roadmap.
ChatGPT users will get free unlimited access to GPT-5, while paid users receive enhanced intelligence.
Baidu also plans to release its next AI model by June and make it open source.
DeepSeek’s Impact on AI Market
Baidu’s decision follows the rapid rise of DeepSeek’s AI models in China.
DeepSeek’s R1 model competes with top US AI models at significantly lower costs.
Baidu’s Deep Search function, with expert-level reasoning, will also launch for free in April.
Chinese AI firms are under pressure to innovate as the AI race intensifies.
DeepSeek’s advancements have shaken the industry, forcing major players to adapt.
Baidu’s Market Response
Baidu’s Hong Kong-listed stock surged 12% on Thursday following its AI announcements.
On Friday, shares traded at approximately 95 Hong Kong dollars ($12.20) per share.
The company is a key component of the Hang Seng China Enterprises Index.
Since January, the index has risen by 20%, driven by AI sector growth.
Investors see Baidu’s AI expansion as a strategic move to stay competitive.
China’s AI Landscape
ChatGPT’s 2022 debut pushed Chinese tech giants to develop local AI alternatives.
Baidu was an early contender, launching its chatbot within four months.
Despite its advancements, Baidu lags behind competitors like ByteDance’s Doubao in popularity.
Alibaba outpaced Baidu by securing Apple’s partnership for AI integration in China.
Tencent and Alibaba continue to challenge Baidu in the competitive AI market.
