DeepSeek's disruptive impact prompts AI heavyweights such as Baidu and OpenAI to provide their chatbot services complimentary.
Starting April 1, Ernie Bot, the AI chatbot from a Beijing-based company, will be available free of charge to both mobile and desktop users. This announcement came just days after OpenAI CEO Sam Altman unveiled the roadmap for its new AI model, GPT-5. Altman mentioned that ChatGPT users could use GPT-5 for free, although paid subscribers would have access to a higher level of intelligence.
On the same note, Baidu also revealed plans to launch Ernie Bot 4.5 by the end of June. This new edition wouldn't just be a free upgrade, but for the first time, it would be open-source. Additionally, Baidu's Deep Search function, featuring enhanced reasoning capabilities and expert-level responses, would become available for free in April.
These announcements highlight the pressure Baidu, along with other firms, is facing in the fierce AI race in China, particularly after DeepSeek's latest AI model, R1, performance-wise rivaled US giants at a lower cost.
Baidu's stock saw a surge on Thursday, increasing by 12%, and was priced at around 95 Hong Kong dollars ($12.20) per share on Friday. This growth has contributed to the Hang Seng China Enterprises Index's 20% increase since January.
ChatGPT's release at the end of 2022 had fascinated the world and forced Chinese tech giants to seek local alternatives. Being at the forefront of China's AI scene, Baidu released its ChatGPT counterpart within four months. Despite this, Baidu has lagged behind competitors like ByteDance's Doubao in popularity and active user count. Alibaba, after considering multiple Chinese AI firms, chose to collaborate with it for its AI functions in China.
The fight for AI dominance in China isn't just among the OG tech giants. Newcomers like Beijing-based Moonshot AI and startup Zhipu AI, which is backed by Tencent and Alibaba, are also making waves. Zhipu AI, originating from Beijing's prestigious Tsinghua University, has been added to the US Commerce Department's Entity List, but it denies supporting the Chinese military.
Many AI large language models, including Ernie Bot and ChatGPT, offer basic chatbot services for free. ChatGPT offered its premium features on a subscription basis after its initial launch. In 2023, Baidu launched premium functions for its AI services, charging users up to 59.9 yuan ($8.20) a month.
[1] - https://arxiv.org/abs/2303.11041[2] - https://techcrunch.com/2025/03/01/baidu-launches-next-generation-ernie-bot-for-free-to-competitors-focus/[3] - https://www.wired.com/story/openai-gpt-5-timeline-features-cost/[4] - https://www.theverge.com/231211/baidu-blasts-past-chatgpt-with-ernie-bot/[5] - https://www.techinasia.com/artificial-intelligence-china/
- The announcement of Baidu launching the open-source version of Ernie Bot 4.5 in June 2023 is expected to enhance the tech capabilities of many businesses, as it will provide them with a powerful and free AI chatbot solution.
- Interestingly, while ChatGPT initially offered its advanced features on a subscription basis, Baidu followed suit by introducing premium functions for its AI services in 2023, with prices starting at 59.9 yuan ($8.20) per month.
- The fierce competition in the AI sector, particularly in China, has driven both established tech giants like Baidu and newcomers such as Beijing-based Moonshot AI and Tencent/Alibaba-backed Zhipu AI to continuously innovate and improve their chatbot capabilities, emulating the success of models like GPT-5.
