AI Giants Baidu, OpenAI Offer their Chatbots for Free in Response to DeepSeek’s Move

By Evans Momodu
2 minute digest
Updated 10:21 UK (GMT), Friday, Feb 14, 2025


Chinese tech giant Baidu is making a bold move to stay ahead in the intensifying AI race by making its advanced chatbot, Ernie Bot, free for all users starting April 1.

The decision comes as competition in the AI industry heats up, especially after the rapid rise of DeepSeek, a Chinese startup whose AI models have challenged global leaders with impressive performance at a lower cost.

Baidu’s announcement, made via WeChat on Thursday, arrived just hours after OpenAI CEO Sam Altman revealed that ChatGPT users will have unlimited free access to the upcoming GPT-5 model, with paid subscribers gaining access to enhanced intelligence.

In response, Baidu is also planning to launch its next-generation AI model by June—and for the first time, it will be open source, following DeepSeek’s approach.

The high-stakes AI battle in China has forced Baidu to accelerate its strategy. While it was an early leader in China’s AI race—releasing Ernie Bot just months after ChatGPT’s global debut—it has since struggled to maintain dominance.

Competitors like ByteDance’s Doubao and Alibaba have gained ground, with Apple even choosing Alibaba over Baidu as its AI partner in China.

Investors have reacted positively to Baidu’s aggressive AI push. The company’s Hong Kong-listed stock surged 12% on Thursday and has contributed to a broader rally in the Hang Seng China Enterprises Index, which has risen 20% since January.

With Ernie’s Deep Search function—offering enhanced reasoning and expert-level responses—also launching for free in April, Baidu is making a decisive play to regain momentum in the AI arms race. However, with global and domestic rivals moving just as fast, the battle for AI dominance is far from over.
Source: CNN