Baidu Inc. has officially open-sourced its generative AI chatbot, Ernie, challenging western competitors like OpenAI and Anthropic. This strategy, aimed at reducing licensing fees, aligns with Baidu's shift from a proprietary model to promoting a more accessible ecosystem. Analysts, including Omdia's Lian Jye Su, see this as a bold move to disrupt pricing dynamics. With 23 million active users, Ernie’s rise could pressure U.S. AI firms amid intensifying competition in China's AI market.