Baidu, OpenAI Offer Free Chatbot Services Amid Rising Competition with Chinese Counterpart

In response to the growing popularity of startup DeepSeek’s AI models, Baidu and OpenAI have announced that their chatbot services will be available for free, CNN reported. Baidu’s Ernie Bot will launch at no cost for both mobile and desktop users starting April 1, 2025. This follows OpenAI CEO Sam Altman’s announcement that ChatGPT users will have unlimited access to the upcoming GPT-5 model for free, with premium features available to subscribers.

Baidu also plans to release the next generation of its AI model by June, making it open source for the first time. The announcements come as Baidu faces increased competition from emerging startups like DeepSeek and Moonshot AI, which have gained traction with advanced models at lower costs.

Baidu’s stock saw a significant increase following the news, reflecting investor optimism in the competitive AI landscape. As of November 2024, Ernie Bot had accumulated 430 million users, highlighting its growing presence in the market.