Chinese tech giants slash prices of language models used to power AI chatbots

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Chinese tech giants slash prices of language models used to power AI chatbots
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BEIJING — Chinese tech giants Alibaba and Baidu slashed prices on Tuesday (May 21) of large-language models (LLMs) used to power generative artificial intelligence products, as a price war in the cloud computing sector heats up in China. Alibaba's cloud unit announced price cuts of up to 97 per cent on a range of its Tongyi Qwen LLMs.

The logo of Baidu's AI chatbot Ernie Bot is displayed near a screen showing the Baidu logo, in this illustration picture taken June 28, 2023.BEIJING — Chinese tech giants Alibaba and Baidu slashed prices on Tuesday of large-language models used to power generative artificial intelligence products, as a price war in the cloud computing sector heats up in China.

A price war in China's cloud computing space has been ongoing for the past few months, with Alibaba and Tencent recently lowering prices of their cloud computing services. Baidu's Ernie Lite and Ernie Speed were released in March and until Tuesday corporate customers paid to use them.

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