Baidu Makes ERNIE AI Chatbot Free as Competition in China’s AI Market Escalates

The decision follows rising pressure from startups like DeepSeek and tech giants like Alibaba, signaling a heated AI price war.

Baidu will offer its ERNIE chatbot for free starting April 1, eliminating prior subscription fees of approximately $8 per month.
The move comes after Chinese AI startup DeepSeek disrupted the market with a cost-effective, open-source AI model in January 2025.
Baidu's announcement includes a new 'Deep Search' feature with enhanced reasoning and expert-level responses, also free from April 1.
The AI competition in China has intensified, with Alibaba recently securing a partnership with Apple for AI integration in iPhones.
Baidu's stock surged up to 12% following the announcement, reflecting investor optimism despite challenges from rivals like ByteDance and Moonshot AI.