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9mo ago

Baidu to Make ERNIE AI Chatbot Free as Competition Intensifies in China's AI Market

Starting April 1, Baidu will provide free access to its ERNIE chatbot and new Deep Search feature, aiming to regain market share in a rapidly evolving industry.

Baidu is headquartered in Beijing, China.
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Photo illustration of a person interacting with the Ernie Bot app by Baidu on a smartphone with the Baidu logo visible in the background.
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Overview

  • Baidu announced that its ERNIE Bot, a ChatGPT-like AI chatbot, will be free for all users starting April 1, citing cost reductions and technological upgrades.
  • The company will also release a new Deep Search feature, offering enhanced capabilities in reasoning, planning, and expert-level responses, free of charge on the same date.
  • Baidu's decision comes as competition in China's AI market intensifies, with rivals like DeepSeek, ByteDance, and Alibaba making significant advances in generative AI services.
  • Baidu's stock rose by over 5.5% in Hong Kong trading after the announcement, recovering from earlier losses linked to losing a partnership with Apple to Alibaba.
  • Analysts suggest that offering ERNIE for free may help Baidu gather more user data to improve its AI model but caution that it lags behind competitors in daily active users and market positioning.