Beijing, China:
Thank you for reading this post, don't forget to subscribe!In a strategic move to strengthen its position in the rapidly evolving artificial intelligence (AI) landscape, Chinese tech giant Baidu has announced that its AI chatbot, Ernie Bot, will be made available to all users free of charge starting April 1, 2025. This decision comes as Baidu faces increasing competition in China’s AI sector, particularly from emerging players like DeepSeek and established firms such as Alibaba and ByteDance.
Baidu’s announcement, made on February 13, 2025, signifies a shift in the company’s approach to AI services. Previously, Baidu offered premium features powered by its advanced models, including Ernie 4.0, at a monthly subscription fee of 59.9 yuan (approximately $8.18). The move to a free model aims to enhance user adoption and engagement in a market where competitors are rapidly gaining ground.
DeepSeek, a Beijing-based startup, has disrupted the AI landscape by offering free AI chatbot services that claim performance comparable to advanced systems like OpenAI’s GPT-4, but at a lower operational cost. Similarly, ByteDance’s Doubao chatbot has seen significant user adoption, surpassing Ernie Bot in popularity. Data from AI product tracker Aicpb.com indicates that Doubao leads the market with 78.6 million active users, while Ernie Bot trails behind.
In response to these competitive pressures, Baidu is not only making Ernie Bot free but also plans to open-source its next-generation AI models. The company announced that it would release its upcoming Ernie 5.0 model as open-source software by June 30, 2025. This initiative aims to foster collaboration with developers and enterprises, accelerating innovation and adoption of Baidu’s AI technologies.
Baidu’s CEO, Robin Li, emphasized the importance of accessibility and collaboration in the AI sector. “By open-sourcing our next-generation models and offering Ernie Bot free of charge, we aim to lower the barriers to AI adoption and stimulate innovation across industries,” Li stated. He also highlighted that the inference cost of large language models could be reduced by more than 90% per year, making AI technologies more affordable and scalable.
The company’s strategic shift comes amid a broader trend in the AI industry, where leading firms are reducing costs and increasing accessibility to their AI models. Alibaba’s cloud unit recently slashed prices for its generative AI models by up to 97%, intensifying the competitive landscape. Baidu’s decision to offer Ernie Bot for free and open-source its future models reflects this industry-wide movement towards democratizing AI technologies.
Despite being an early mover in China’s AI scene, Baidu has faced challenges in achieving widespread adoption of its Ernie large language model. The company’s AI offerings have lagged behind domestic competitors in terms of user engagement and market penetration. By eliminating subscription fees and embracing an open-source approach, Baidu aims to enhance its competitiveness and appeal to a broader user base.
In addition to making Ernie Bot free, Baidu announced the launch of an advanced search function, which will also be freely available from April 1, 2025. This feature promises enhanced reasoning capabilities and tool integration, delivering expert-level responses to user queries. The integration of advanced AI functionalities into Baidu’s core services underscores the company’s commitment to leveraging AI to improve user experience and maintain its position in the market.
As Baidu navigates the competitive AI landscape, its success will depend on the effective implementation of these strategic initiatives and its ability to foster a robust ecosystem around its AI technologies. The company’s efforts to democratize access to its AI models and tools reflect a broader industry trend towards open collaboration and innovation in artificial intelligence.
