DeepSeek’s Meteoric Rise Forces Baidu to Drop Chatbot Paywalls
By Liu Peilin and Denise Jia
Following DeepSeek’s launch of free AI chatbot for the public, OpenAI and Baidu Inc. have followed suit, announcing free access to their own chatbot services, intensifying competition in the AI chatbot market.
Baidu said Thursday that its PC-based and mobile chatbot Ernie Bot would become fully free starting April 1, granting users access to its latest AI models with capabilities such as long-text processing, retrieval-augmented generation, AI-generated images and multilingual conversations.
Hours earlier, Sam Altman, OpenAI’s chief executive, had unveiled his company’s roadmap for its next-generation AI models on X. He said the base version of GPT-5 would be available with unlimited access for free ChatGPT users, while more advanced versions would remain behind a paywall.
In the past, most AI chatbots, including ChatGPT and Ernie Bot, have offered core functionalities for free, while companies such as OpenAI, Baidu, Anthropic’s Claude and Zhipu AI introduced paid plans for access to their latest models, unlimited usage or additional features.
When OpenAI first launched ChatGPT in November 2022, it was free. As demand increased, access became unreliable during peak hours. In February 2023, OpenAI introduced a $20-a-month “ChatGPT Plus” subscription, offering priority access, faster response times and early access to new features. When GPT-4 launched in March 2023, only Plus users received immediate access, while free users had to wait until GPT-4o was released in May 2024. Other advanced features, such as the GPT Store and custom GPTs, were initially exclusive to paying customers.
In August 2023, OpenAI launched an enterprise version of ChatGPT without fixed pricing, distinguishing it from the consumer versions by ensuring business data privacy.
By 2024, OpenAI had expanded its pricing structure. In January, it introduced ChatGPT Team, aimed at small groups of about 100 users, with an annual subscription costing $25 per user per month. In December, with the release of its new inference model, OpenAI launched ChatGPT Pro, a $200-per-month plan designed for power users.
With these additions, OpenAI now offers four paid plans: Team and Enterprise for businesses, and Plus and Pro for individuals. Plus users gain access to all OpenAI models and custom GPTs, while Pro users enjoy unlimited model usage and exclusive access to OpenAI’s new AI agent, Operator.
By contrast, Chinese AI companies have simpler pricing models. In November 2023, Baidu introduced a 49.9 yuan ($6.83) monthly membership for Ernie Bot, providing access to its latest AI model, image generation and web plugins. Other major Chinese AI companies have adopted similar models. Zhipu AI’s chatbot, Zhipu Qingyan, offers a 19-yuan monthly plan for unlimited model access and video generation. Kimi AI Assistant from Moonshot AI allows users to tip but does not tie payments to access, while MiniMax’s Xingye App has paid features, but it markets itself as an AI content community rather than a chatbot service.
DeepSeek’s rapid rise is widely seen as a factor behind OpenAI and Baidu’s decisions to offer free chatbot access. The company launched its public chatbot app on Jan. 15, and its explosive growth has disrupted the AI chatbot market that previously relied on paid subscriptions.
According to web analytics firm Similarweb, DeepSeek’s website traffic surged 2,257% in January, reaching 278 million visits in a single month. While this still lags behind ChatGPT’s 3.8 billion visits, DeepSeek has already surpassed platforms such as Apple iCloud and Salesforce.
At the World Governments Summit in Dubai on Tuesday, Robin Li, Baidu’s CEO, was asked about DeepSeek’s rapid rise. He avoided a direct answer, saying only that “innovation cannot be planned” and that its core function is to reduce costs and increase productivity.
When asked whether AI models could become profitable despite high development costs, Li argued that tech companies must continue investing to maintain their competitive edge. He expressed optimism about enterprise applications but noted that consumer-facing AI still lags behind the dominance of mobile internet. He does not yet see AI evolving into a dominant consumer platform.
Li also weighed in on the open-source versus closed-source AI debate, saying that open-source models drive broader adoption, which accelerates innovation. “Faster adoption leads to more experimentation, which fosters innovation at the application level,” he said.
His comments marked a shift from his previous stance. In April 2024, Li had argued internally that closed-source models would remain superior and publicly stated that open-source models were falling behind.
Contact reporter Denise Jia (huijuanjia@caixin.com)
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