In what may potentially mark the start of a price war in China’s nascent AI market, Alibaba Group (BABA) slashed prices for a selection of artificial intelligence services by as much as 97%, spurring an immediate response from Baidu (BIDU), which said it would offer free services based on its Ernie AI models on Tuesday, according to Bloomberg’s Sarah Zheng and Zheping Huang. ByteDance last week announced pricing for AI services that it said were 99% lower than Chinese industry norms, using Ernie and Alibaba’s Qwen as benchmarks, the report noted.
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