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BIDU-BAIDU INC

Baidu Faces Revenue Decline Amid Rising Competition and Price Wars in AI Market, But Moves to Boost Ernie Bot's Accessibility with Free Access Starting April 1

Friday

21 February, 2025

As Baidu braces for a 4.5% revenue decline amid fierce competition and price wars in the AI sector, it’s taking bold steps by making its Ernie AI chatbot free starting April 1. Can this strategy turn the tide against rivals like DeepSeek and ByteDance's Doubao?

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Article Impact Score

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Key Takeaways
  • Baidu is offering its Ernie AI chatbot at no cost to boost user interaction and capture a larger market segment.
  • The introduction of the advanced Ernie 5 model reflects Baidu's dedication to enhancing content processing capabilities.
  • A notable 11.7% rise in share price indicates favorable market reactions and investor enthusiasm following the Ernie Bot reveal.
  • Despite immediate financial hurdles, Baidu's AI strategy may provide significant long-term benefits for patient investors amidst market fluctuations.
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