Chinese Tech Giants Slash AI Model Prices in Fierce Market Competition

Alibaba, Baidu, Tencent, and ByteDance drastically lower costs to attract users and dominate the AI landscape

Alibaba and Baidu announced price cuts of up to 97% for their large-language models used in AI chatbots.
Tencent and iFlytek followed suit, with iFlytek offering some services for free and others at significantly reduced rates.
ByteDance's Doubao model is now priced 99% lower than the industry average for enterprise users.
The price war is part of a broader strategy by Chinese tech companies to capture market share in the burgeoning AI sector.
These aggressive pricing tactics are putting pressure on smaller startups and could impact profit margins.