The global AI landscape is being reshaped following the release of a powerful low-cost large language model by Chinese startup DeepSeek last month, with leading AI competitors at home and abroad shifting to an open-source strategy.
DeepSeek's new R1 model has achieved ChatGPT-level performance at a fraction of the cost, attracting global users and challenging the traditional reliance on hardware investment and computing power in AI development.
Unlike ChatGPT, DeepSeek is open source, allowing anyone to download, modify and build upon it. This strategy has forced major players in the field to shift their attention to open-source development.
Chinese internet search giant Baidu on Thursday announced that its Ernie Bot service will be free for all PC and mobile users starting from April 1.
Ernie Bot is an AI chatbot developed by Baidu. It's based on the Ernie 4.0 large language model and is designed to understand and generate human-like language responses.
On the same day, ChatGPT creator OpenAI said the free tier of ChatGPT will get unlimited chat access to its coming GPT-5 at the standard intelligence setting.
Google has also opened its latest AI model suite to all users.
"When open source models can perform 80 percent of commercial functions at only one tenth of the cost, the monopoly of the closed source system will naturally collapse, forcing the leading players to abandon walled gardens," said Gong Zheng, an engineer with the Technology and Standards Research Institute of the China Academy of Information and Communications Technology.
Gong explained the business logic behind the sudden pivot to seemingly unprofitable free access after years of subscription-based services.
"When tech leaders are able to offer higher-performance services at lower costs, being free will become a tool for market dominance," Gong said.
Analysts say this trend will intensify competition in the industry. Smaller players unable to afford the long-term open source strategy may exit the market, while industry leaders will create a circle of "technology upgrade-user growth-cost reduction" by optimizing their models based on accumulated user data. Therefore, resources will be further concentrated on companies with advantages in computing power, data and capital.
On the one hand, free services will attract more users and developers, promoting popularization and application of AI technologies. On the other hand, this will compel competitors to explore new business models, according to Bai Runxuan, an analyst of CCID Consulting's center for AI and big data research.
"It's a megatrend to offer basic services for free, but enterprise-level services will still be charged. As countries strengthen the supervision of AI, such requirements as data traceability and security audit will drive up hidden costs of the suppliers. This may lead to the emergence of some new charging models," Bai said.
DeepSeek spurs global AI competitors to adopt open-source strategy
