AI Companies Reassess Their Subscriptions After DeepSeek Released Advanced Model for Free

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DeepSeek has shaken up the AI landscape by offering its advanced AI model for free, prompting competitors to reconsider their pricing strategies. In response, Baidu and OpenAI are making their next-generation AI models accessible to non-subscribers. Baidu's chatbot will provide premium features for free starting April 1, while its Ernie AI model will become open source by June 30.

DeepSeek's R1 reasoning model has demonstrated performance comparable to OpenAI's models but at a lower training cost, raising concerns about security and potential government ties. OpenAI's upcoming GPT-5 will also be free for ChatGPT users, with a focus on simplifying product offerings and unifying model types. This shift towards free or low-cost AI products could signify a major change in the industry's monetization strategies.

• DeepSeek disrupts AI market by offering advanced model for free.

• Baidu and OpenAI respond by making premium features available for free.

Key AI Terms Mentioned in this Article

Deep Learning

It is relevant as DeepSeek's model utilizes deep learning techniques to achieve high performance.

Open Source

Baidu's decision to make its Ernie AI model open source reflects a trend towards collaborative development in AI.

Generative AI

DeepSeek's advanced R1 reasoning model exemplifies generative AI by producing outputs similar to those of established models.

Companies Mentioned in this Article

DeepSeek

DeepSeek is a Chinese AI company that has introduced a free advanced AI model, challenging competitors' pricing strategies.

Baidu

Baidu is a Chinese tech giant that plans to offer premium features of its chatbot for free, responding to market changes initiated by DeepSeek.

OpenAI

OpenAI is a leading AI research organization that will release its GPT-5 model for free, aiming to simplify its product offerings.

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