TECH - Alibaba Sparks AI Price War With Massive Discounts: Report | Benzinga
In a major move, Alibaba Group Holding Ltd (NYSE:BABA) slashed prices on its artificial intelligence services by up to 97%, prompting immediate reactions from competitors Baidu Inc (NASDAQ:BIDU) and ByteDance Ltd.
This aggressive pricing strategy is expected to ignite a price war in China's emerging AI sector.
Baidu responded soon with free services based on its Ernie AI models, shortly after Alibaba announced price cuts on nine products utilizing its Tongyi Qianwen technology.
ByteDance had already set the stage last week by offering AI services at prices 99% lower than industry norms, benchmarking against Ernie and Alibaba's Qwen, reported Bloomberg.
These actions signal the beginning of fierce competition driven by pricing within the AI industry. The sector has attracted massive investments from startups and major tech firms like Tencent Holdings Ltd. (OTC:TCEHY).
The influx of capital has led to the creation of ...