Hong Kong – A new chapter in artificial intelligence has begun as major AI players scramble to adapt to the rapid advancements of emerging startups. The latest shake-up comes as Baidu and OpenAI make significant shifts in their strategies, offering their AI chatbot services free of charge in response to the rising influence of DeepSeek, a Chinese AI startup that has been making waves with its powerful and cost-effective models.
Baidu’s Thursday announcement on WeChat confirmed that Ernie Bot, its flagship AI chatbot, would be available at no cost for all users starting April 1. This move marks a pivotal shift for the Beijing-based company, which has been competing fiercely in China’s AI sector. The chatbot’s premium features, including its AI painting capabilities and advanced reasoning tools, will also be made free, signaling a major push to retain users in the face of stiff competition.
At nearly the same time, OpenAI CEO Sam Altman took to social media to unveil the company’s plans for GPT-5, the latest iteration of its widely used AI model. Altman confirmed that ChatGPT users would have free and unlimited access to GPT-5, though premium subscribers would still receive a higher-tier experience with enhanced intelligence. The announcement reaffirmed OpenAI’s commitment to maintaining its leadership position in an industry that is rapidly evolving.
Baidu followed up with another statement on Friday, revealing that it plans to release its next AI model by June and, for the first time, make it open-source. This decision represents a fundamental shift in the company’s approach, aligning with DeepSeek’s philosophy of AI accessibility. Furthermore, Baidu disclosed that Ernie Bot’s Deep Search function, an advanced feature with refined reasoning and expert-level responses, would also be launched for free in April.
DeepSeek’s rise has significantly altered the competitive landscape. The startup’s R1 AI model has been lauded for delivering capabilities rivaling those of top-tier American firms at a fraction of the cost. This breakthrough has forced major players to reassess their business models, leading to the recent wave of free AI services.
The ripple effect of these decisions has extended to the financial market, with Baidu’s Hong Kong-listed stock soaring 12% on Thursday. The stock continued trading around 95 Hong Kong dollars ($12.20) on Friday, playing a crucial role in the 20% growth of the Hang Seng China Enterprises Index since January.
With the AI battlefield expanding rapidly, companies are vying for dominance in an industry driven by both technological advancements and user accessibility. The strategic decisions by Baidu and OpenAI to remove cost barriers mark a defining moment in the race to shape the future of artificial intelligence.
