Bloomberg reports intense AI price war on the Chinese front in the past week. This followed Alibaba’s aggressive move to slash the cost of its own AI service named Qwen (officially Tongyi Qianwen) by a staggering 97%, forcing competitors to engage in a price war.
Shortly after, Baidu announced that its Ernie AI service would be offered for free, while ByteDance had to reduce the price of its Doubao model by 99% in response.
Earlier this month, Alibaba released Qwen version 2.5, boasting enhanced capabilities. However, the use of AI models from the Chinese side remains restricted primarily to Chinese companies. The showcased clients by Alibaba include only Chinese companies such as Xiaomi and Perfect World Games.
Sources: Bloomberg, Alibaba, Verdict, Reuters
TLDR: Bloomberg reports a fierce AI price war among Chinese tech giants, with Alibaba leading the charge by slashing prices on its Qwen AI service, prompting competitors to follow suit. This has led to Baidu offering Ernie AI for free and ByteDance cutting prices on their Doubao model significantly. AI adoption in China remains largely limited to Chinese companies such as Xiaomi and Perfect World Games.
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