Public announcements from respective companies

Alibaba Cloud Cuts AI Model Prices by 97%, Sparking Price War with Baidu

May 21, 2024, 05:12 AM

Alibaba Cloud has announced a significant reduction in service prices for its AI model, Tongyi Qianwen, by up to 97%, effective May 21. This marks the third price cut by Alibaba Cloud this year. The price reduction has prompted a swift response from Baidu, which has made its ENIRE Speed and ENIRE Lite models free to use. The move is seen as the beginning of a price war in China's nascent AI market. Alibaba's Qwen-Long model, equivalent to GPT-4, will now cost about 1/400 of the price of GPT-4. The price cuts will be in effect from today until June 21. The API input price for Tongyi Qianwen has also been reduced by up to 97%.