Baidu has achieved remarkable success in the commercialization of its Wenxin model in the AI field, with average daily calls exceeding 600 million times, an increase of more than 10 times in half a year. This not only reflects Baidu's leading position in AI technology, but also heralds the AI will become an important engine driving the development of Baidu and the entire industry. In the second quarter of 2024, Baidu delivered an impressive report card, with revenue and profits both increasing significantly, far exceeding market expectations, demonstrating its strong profitability and market competitiveness. This article will provide an in-depth analysis of the success factors of Baidu AI commercialization and its future development prospects.
Today, with the rapid development of AI technology, the commercialization of large models has become a hot spot of competition in the industry. Baidu, as a leading company in the field of AI, has average daily calls of its Wenxin model exceeding 600 million times, achieving an astonishing growth of more than 10 times in half a year. This achievement not only demonstrates Baidu’s profound accumulation in AI technology, but also indicates that AI is becoming a powerful acceleration engine for Baidu and even the entire industry.
The report card Baidu handed over this time is perfect. In the second quarter of 2024, Baidu's total revenue reached 33.9 billion yuan, core revenue was 26.7 billion yuan, and operating profit was 5.6 billion yuan, a year-on-year increase of 23%, far exceeding market expectations. Such achievements are enough to make competitors stomp their feet with envy.
Baidu founder Robin Li confidently stated that generative AI and basic models are quietly changing the world. With the rapid popularity of its full-stack AI technology and Wenxin large model, Baidu is providing solutions to all walks of life and creating huge value.
The number of Wenxinyiyan users has exceeded 300 million, and the amount of text processed every day exceeds 1 trillion Tokens. This means that almost everyone in China is using Baidu’s AI technology directly or indirectly.
Baidu's price reduction strategy is a stroke of genius, allowing small and medium-sized enterprises to get a taste of the benefits of AI technology. The free opening of the ERNIE series models and the significant price reduction of the flagship model allow more companies to enjoy the convenience brought by AI. This is not only a business strategy, but also Baidu’s determination to promote the popularization of AI.
Baidu Cloud business is also booming with the support of AI, with revenue of 5.1 billion yuan in the second quarter, a year-on-year increase of 14%. As an enterprise-level large-scale model platform, Qianfan Platform is providing strong support to industries such as public services and medical care.
AI technology not only drives the growth of cloud business, but also profoundly changes Baidu's core search and advertising businesses. Now, 18% of search results are generated by AI, which means Baidu’s search services are becoming more intelligent and accurate.
Baidu’s AI ecosystem is also growing. From Baidu Wenku to AI programming tool Wenxin Kuaicode, Baidu is extending the reach of AI to various fields, providing hundreds of multi-modal AI functions. These tools are transforming from simple content tools to powerful productivity tools.
Investment institutions are generally optimistic about Baidu's future. Institutions such as Citibank, JPMorgan Chase, and Tianfeng Securities all believe that Baidu's intensive efforts in the field of AI will bring about accelerated growth in its cloud computing and search businesses.
Baidu's success is not only a victory for one company, but also injects strong confidence into the entire AI industry. In this marathon of AI commercialization, Baidu is already one step ahead. In the future, whoever can build its own core competitiveness in the field of AI will have the last laugh in this competition. Let us wait and see how Baidu continues to write its AI myth!
All in all, Baidu's success in the field of AI is a comprehensive reflection of its technical strength, business strategy and market insights. AI competition will be more intense in the future, but Baidu already has a favorable position, and its continued innovation and development are worth looking forward to.