Baidu is taking a bold step in the fast-evolving artificial intelligence (AI) race by offering its advanced AI chatbot, Ernie Bot, for free. This decision comes at a time when competition among global AI developers is heating up, with notable players like DeepSeek making waves in the AI market.

Starting on April 1, Baidu will make its premium AI chatbot services available for free to both mobile and desktop users. This includes Ernie Bot’s advanced features, such as its AI painting tools. The company shared the announcement on WeChat Thursday, signaling a major shift in its AI strategy.

OpenAI and Baidu Respond to Rising Competition

The move to offer Ernie Bot for free comes on the heels of OpenAI’s recent announcement. Just hours before Baidu’s statement, OpenAI CEO Sam Altman shared plans for GPT-5 on social media platform X. Altman confirmed that ChatGPT users would have unlimited free access to GPT-5. However, those who subscribe to paid plans will benefit from a more advanced version of the model with superior intelligence.

Baidu also revealed plans for its next AI model, which is set to launch by the end of June. In a significant departure from previous practices, the new version of Baidu’s AI will be open-source, a strategy it is adopting to compete with DeepSeek, a company that has gained considerable attention for its innovative and high-performance models.

Deep Search Feature Goes Free in April

In another key move, Baidu announced that its Deep Search feature of Ernie Bot, known for its expert-level responses and improved reasoning abilities, will also be available for free starting in April. The feature, which provides high-level search capabilities, will now be more accessible, marking a new phase for Baidu in its AI development journey.

Baidu’s efforts to push Ernie Bot’s advanced features to the masses highlight the increasingly fierce competition in China’s AI market. One of the key players in this competition is DeepSeek, a startup that has raised eyebrows for delivering performance comparable to US tech giants while keeping costs lower.

Baidu’s Stock Surge and Market Reaction

Baidu’s stock experienced a surge following the announcement. The stock rose 12% on Thursday, with shares trading at about 95 Hong Kong dollars ($12.20) by Friday. As part of the Hang Seng China Enterprises Index, Baidu has been a key contributor to the index’s 20% rise since January. This growth indicates positive market sentiment as Baidu continues to expand its AI offerings and solidify its position in the competitive landscape.

Rising Competition in China’s AI Industry

Since the launch of OpenAI’s ChatGPT in late 2022, the AI race has intensified, prompting Chinese tech companies to develop their own local alternatives. Baidu, quick to respond, launched Ernie Bot just four months after ChatGPT debuted. However, while Baidu was an early mover, it has struggled to gain the same level of user engagement and popularity as ByteDance’s Doubao chatbot.

Additionally, Alibaba has been collaborating with Apple to introduce new AI features in China. This partnership followed a thorough evaluation of AI companies, including Baidu, and highlights the shifting dynamics in China’s tech sector, where traditional giants are facing increasing challenges from rising AI startups.

Among these startups, DeepSeek and Moonshot AI are gaining traction. Moonshot AI introduced its chatbot Kimi late last year, which has rapidly gained popularity. By January, Kimi became the third-most visited chatbot in China, behind DeepSeek and Doubao, according to AI product tracker aircpb.com.

Zhipu AI: A New Contender

Zhipu AI, a startup emerging from Tsinghua University, is another key player in China’s AI ecosystem. Backed by tech giants Tencent and Alibaba, Zhipu has strong government ties. However, Zhipu faced a setback in January when the US Commerce Department added it to the “Entity List” due to alleged links to the Chinese military. Zhipu has denied these claims, but the controversy highlights the growing geopolitical tensions surrounding AI development.

Free AI Services: A New Trend

Baidu’s decision to offer Ernie Bot’s premium services for free aligns with a broader trend in the AI industry. Many major AI developers, including OpenAI and Baidu, initially launched their chatbot services for free before introducing paid premium features. Baidu had charged up to 59.9 yuan ($8.20) per month for advanced tools, such as text-to-image generation, in 2023. By November 2024, Ernie Bot had attracted 430 million users, underscoring its popularity despite competition.

The Future of China’s AI Landscape

The rapid growth of AI technologies in China is reshaping the global tech scene. Baidu, along with other major companies like Tencent and Alibaba, is racing to secure a leadership position in AI. Meanwhile, the rise of innovative startups like DeepSeek, Moonshot AI, and Zhipu AI indicates that competition is far from over.

As Baidu continues to expand Ernie Bot’s capabilities and offers more features for free, it remains to be seen how the company will balance growth with its plans to release open-source models and compete with established players like DeepSeek.

The AI race in China is still in its early stages, but the next few months could define the winners and losers in the rapidly changing landscape. Baidu’s free access to Ernie Bot is a strategic move that could position it well in the battle for AI supremacy in China.

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