News summary
Alibaba Cloud announced that the API price of its main model has been significantly reduced by 97%cryptogamesfree, Baidu followed suit and launched two large models for free, indicating that competition in the large model market is fierce and a price war is imminent.
Newsletter text
Alibaba Cloud significantly reduces the price of smart model API, triggering an industry price war
In the field of cloud computing, Alibaba Cloud Intelligent Group recently announced that it will significantly reduce the API price of Tongyi Qianwen's main model by 97%, which has attracted market attention to the price war in the large model industry. On May 21, Alibaba Cloud changed the API price of the Qwen-Long model from 0cryptogamesfree.02 yuan dropped to 0.0005 yuan, a drop of as much as 97%.
At the same time, Baidu has also joined the price war, announcing that two main models, ENIRESpeed and ENIRELite, will be available for free. ByteDance's Volcano Engine has updated the pricing details of the large model of bean buns, offering highly competitive prices.
Price competition in the large model industry is not limited to domestic. The prices of foreign products such as GPT-4, Gemini1.5Pro, and Claude3Sonnet are relatively high. In contrast, the price of domestic Ernie-4.0 is also at a relatively high level. The price reduction of domestic manufacturers has undoubtedly caused waves in the international market.
The rapid development of large model technology has led to rapid iteration of performance and reduced costs, which has become the main reason for price cuts. Analysys partner Zhang Chengyu pointed out that the development of large models has exceeded the framework of Moore's Law, and performance may double every six months or so.
Wang Chao, founder of Wenyuan think tank, emphasized that the price reduction trend of large models is inevitable, and only the latest technology can gain benefits. He mentioned that the competition for large models should not only focus on the number of tokens, but should also focus on multimodal, recognition, understanding and other aspects.
Regarding the future development of large models, Zhang Chengyu believes that price competition is dynamic and the core customer base is not price-sensitive users. Wang Chao put forward his view on C-terminal charges, believing that large model industries should not rely on the Internet to charge after being free.
With the fierce competition among various manufacturers, the price trend and business model of the future large model market will attract much attention. This price war driven by technological progress will undoubtedly reshape the competitive landscape of the entire industry.