Baidu announced that it would make its AI chatbot, Ernie Bot, completely free to users starting April 1, reflecting improvements in technology and cost reductions.
This decision comes amid increasing competition in China’s AI landscape, with emerging players such as DeepSeek offering free AI chatbot services that claim to rival the advanced models developed by U.S.-based OpenAI. By removing the paywall, Baidu aims to boost the adoption of Ernie Bot, which has struggled to gain a dominant position in the market despite being an early AI pioneer in China.
Baidu has been a frontrunner in AI development in China since OpenAI’s ChatGPT debuted in 2022, but its Ernie large language model has faced challenges in widespread user adoption. While Baidu claims that its latest iteration, Ernie 4.0, is on par with OpenAI’s GPT-4, it has yet to match the traction of competing domestic AI products.
Data from AI product tracker Aicpb.com suggests that rival AI chatbots, such as ByteDance’s Doubao and DeepSeek’s offerings, have gained greater user engagement. This competitive pressure has likely influenced Baidu’s decision to make its AI services more accessible by eliminating subscription costs.
Previously, Baidu introduced a premium AI search feature integrated with Ernie 4.0, charging users 59.9 yuan ($8.18) per month. While this paid service represented an effort to monetize its AI capabilities, the company has now decided to make an advanced search function freely available as well, starting on April 1.
This enhanced search feature promises improved reasoning capabilities and deeper tool integration, allowing it to provide expert-level responses to complex queries. By making these AI-powered features more widely accessible, Baidu is positioning itself to attract a larger user base and increase engagement with its AI ecosystem.
The move to offer AI services for free aligns with a broader trend in the AI industry, where companies are adjusting their pricing models to drive adoption while finding alternative revenue streams.
Baidu’s decision to lower barriers to entry suggests confidence in its ability to manage operational costs while improving its AI technology. It also reflects a strategic effort to counteract the growing influence of competitors that have gained traction with cost-effective AI models.
The evolving landscape of AI in China presents both challenges and opportunities for Baidu. While it has made considerable investments in AI research and development, its ability to gain a competitive edge will depend on factors such as model efficiency, user experience, and integration with existing services.
By focusing on accessibility and technological improvements, Baidu is seeking to solidify its position in the Chinese AI market and increase the adoption of Ernie Bot. Whether this strategy will lead to long-term success will depend on user reception and how effectively Baidu can continue to innovate in an increasingly competitive AI environment.
