China’s Cloud Computing Sector Sees Massive Ai Model Price Cuts By Alibaba And Baidu: Here’s Why

Alibaba and Baidu, two of China’s leading tech companies, have significantly reduced prices for their large-language models (LLMs) used in generative AI products, intensifying the price competition in the country’s cloud computing sector. This price war has extended to LLMs behind AI chatbots, potentially impacting profit margins for these companies. Chinese LLM developers have primarily targeted businesses for monetizing their investments in these models, but some have also begun addressing individual users.