Chinese tech stocks, including Alibaba Group Holding Limited (NYSE:BABA), Baidu, Inc (NASDAQ:BIDU), and JD.Com, Inc (NASDAQ:JD), are trading lower Friday after Baidu intensified domestic artificial intelligence rivalry with the latest price war.
Baidu launched its latest large language model, Ernie 4.0 Turbo, targeted at enterprise clients. Baidu Vice President Xie Guangjun announced an event in Shanghai on Friday, Bloomberg reports.
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Baidu priced the Ernie 4.0 Turbo model at 30 yuan ($4.13) per 1 million input tokens and 60 yuan per 1 million output tokens. According to the company's press release, earlier versions of Ernie will see up to 83% price reductions.
The average daily usage of Ernie models increased by 150% sequentially in the second quarter.
Baidu fiercely competes with other major Chinese tech firms and LLM startups for market share, offering free credits or significant discounts to developers using its AI models.
Comparatively, OpenAI's GPT-4 model is priced at $5 per 1 million input tokens and $15 per 1 million output tokens.
To further enhance its market position, Baidu is also focusing on innovative applications of AI across various industries.
Prior reports indicated Alibaba was slashing prices on its AI services by up to 97%, up from 55%.
Price Actions: BABA shares were trading lower by 0.62% at $75.09 in the premarket at the last check on Friday. BIDU is down 1.23% at $88.95, JD down by 1.60% at $26.44.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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