Baidu and OpenAI are making their advanced AI chatbots free as competition intensifies with rising Chinese startup DeepSeek.
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| In response to DeepSeek’s rapid growth, Baidu’s Ernie Bot and OpenAI’s GPT-5 will offer free access to users starting this year. Image: Baidu Headquarters/ ChicHue |
Hong Kong — February 16, 2025:
In a strategic move to counter the growing competition from Chinese startup DeepSeek, AI leaders Baidu and OpenAI have announced they will offer their chatbot services for free, a development that signals the intensifying global race in artificial intelligence.
Starting April 1, Baidu's advanced AI chatbot, Ernie Bot, which includes features such as AI painting, will be available to both mobile and desktop users at no charge. The company revealed the decision via a WeChat post on Thursday. Baidu’s move comes shortly after OpenAI CEO Sam Altman announced on X that users of its ChatGPT would have unlimited access to its upcoming GPT-5 model for free, though paid subscribers will gain access to a more advanced version.
In a follow-up post on Friday, Baidu also disclosed plans to launch a new generation of its AI model by the end of June, with the added promise to make it open-source, a strategy previously employed by DeepSeek. The new Ernie Bot version will feature enhanced reasoning capabilities and expert-level responses, which will also be offered at no cost, including the Deep Search function.
This shift follows the rising success of DeepSeek’s R1 AI model, which has impressed the global tech community with its comparable performance to major US companies at a fraction of the cost. DeepSeek’s rise has prompted both Baidu and OpenAI to adjust their strategies in order to maintain their positions in the competitive AI landscape.
Baidu’s announcement had an immediate impact on its stock, which surged by as much as 12%, reflecting investor optimism. Meanwhile, China's AI scene continues to heat up, with new entrants like Moonshot AI and Zhipu AI gaining momentum.
Both Baidu and OpenAI had previously charged for premium AI features, but this new wave of free offerings highlights the urgency to stay ahead in the rapidly evolving AI market, where startups like DeepSeek are rapidly closing the gap with established players.