Chinese AI Giants Slash Prices in Fierce War Over Chatbot Language Models

May 23, 2024
Chinese AI Giants Slash Prices in Fierce War Over Chatbot Language Models
  • Chinese tech giants Alibaba, Baidu, Tencent, and iFlytek are engaged in a fierce price war in the AI sector, specifically focusing on their large-language models (LLMs) for AI chatbots.

  • Alibaba Cloud's Tongyi Qwen LLMs have seen a 97% price cut, prompting other companies to lower prices as well.

  • ByteDance's Doubao Pro model is now priced at an incredibly low 0.0008 yuan per 1,000 tokens.

  • Baidu is offering free copies of its Ernie Speed and Ernie Lite models to corporate users.

  • Tencent now provides a free 'lite' version of its LLM, and iFlytek's 'Spark' LLM is either free or significantly cheaper than its rivals.

  • iFlytek's Spark Lite is available for public use at no cost, while Spark Pro/Max is priced at only 0.21 yuan per 10,000 tokens, making it five times cheaper than Baidu and Alibaba's offerings.

  • Tencent has reduced prices of its high-performance LLM versions by 50% to 88%.

  • The price war began after the introduction of ChatGPT-like products by Tencent and iFlytek in September 2023.

  • This competition is impacting businesses that rely on LLMs for AI chatbot services and is also attracting individual users.

  • Chinese companies are vying to outperform U.S.-based OpenAI's ChatGPT and make AI technology more accessible with significant cost savings for users.

Summary based on 7 sources

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