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Source: Changjiang Business Daily
Changjiang Business Daily reporter Huang Cong
Baidu AI bonus has come, and the first quarter generative AI has become a new engine for growth.
On May 16, Baidu (09888. HK) released its financial report for the first quarter of 2024, realizing revenue of 31.5 billion yuan, up 1% year on year; The net profit under non international accounting standards was 7.011 billion yuan, up 22% year on year.
According to the financial report, Baidu App monthly active users reached 676 million in March 2024, up 3% year on year.
It is worth mentioning that generative AI models such as Wenxin Yiyan have brought new growth opportunities to Baidu. Since the release of Wenxin Yiyan last March, the number of users of Wenxin Yiyan has exceeded 200 million, and the daily adjustment of Wenxin's big model has also reached 200 million.
Robin Li, founder, chairman and CEO of Baidu, revealed that after cooperating with Samsung and Glory in China last quarter, Xiaomi, OPPO, vivo and other mobile phone manufacturers have all accessed the Wenxin big model API this quarter. The cooperation field of the big model is still expanding from mobile phones to PC and electric vehicles. Lenovo and Weilai Auto also reached cooperation with Baidu in the quarter.
Moreover, Wenxin's large model has processed 249 billion Tokens per day.
Cooperate with Lenovo and Weilai
On May 16, Baidu released its financial report for the first quarter of 2024, which showed that the company achieved revenue of 31.5 billion yuan, up 1% year on year; The net profit under non international accounting standards was 7.011 billion yuan, up 22% year on year; The net profit attributable to Baidu's core was 6.6 billion yuan, up 26% year on year.
The financial report shows that Baidu's progress in generative AI is one of the driving forces of its performance. Wenxin Yiyan and other generative AI models have brought new growth opportunities to Baidu. Since the release of Wenxin Yiyan last March, the number of users of Wenxin Yiyan has exceeded 200 million, and the daily adjustment of Wenxin's big model has also reached 200 million.
At Baidu's first quarter 2024 financial report conference, Robin Li, Baidu's founder, chairman and CEO, revealed that, following the cooperation with Samsung and Glory in China last quarter, Xiaomi, OPPO, vivo and other mobile phone manufacturers have access to Wenxin's big model API this quarter. The cooperation field of the big model is still expanding from mobile phones to PC and electric vehicles. Lenovo and Weilai Auto also reached cooperation with Baidu in the quarter.
Li Yanhong said that the expansion of intelligent devices has provided ample opportunities for Wenxin model to be adopted by more large-scale users.
At the same time, Baidu also launched AgentBuilder, AppBuilder, ModelBuilder and other tools to reduce the development threshold for developers and enterprises and improve the efficiency of development and training.
Li Yanhong said that with the advent of the era of generative artificial intelligence in China, basic models such as Wenxin Model will become all aspects of infrastructure integration into people's lives. Baidu is making Wenxin big model series more affordable and efficient, which will bring more opportunities for Baidu.
At present, the daily average Tokens text processing of Wenxin big model has reached 249 billion.
Baidu said it was pleased to see that "closed source big model+public cloud" has become the mainstream trend of the global AI market. "Closed source big model+public cloud" can achieve better performance and lower cost than open source big model, and thus promote the prosperity of AI application ecology.
Baidu also introduced that it is trying to promote the ecological development of AI applications represented by agents, and the distribution of agents has reached millions of times per day. With the addition of more developers and partners, the advantages of "closed source big model+public cloud" will be highlighted. Baidu believes that the era of "everyone is a developer" has arrived.
Not only that, Baidu's core business has kept growing, including 676 million monthly active users of Baidu APP and 17 billion yuan of Baidu's quarterly online marketing revenue.
Luo Rong, CFO of Baidu, said that Baidu's core operating profit margin (Non GAAP) reached 23.5%, growing year on year and month on month. Baidu will continue to improve its operational efficiency to support AI business and high-quality growth, and maintain a healthy operating profit margin (Non GAAP).
Launch the sixth generation of turnip fast running unmanned vehicle
According to the financial report, Baidu's revenue comes from Baidu Core and iQIYI, of which Baidu's core revenue is 23.8 billion yuan, up 4% year on year.
Baidu's core business includes online marketing and non online marketing. In the first quarter of 2024, the company's online marketing business contributed 17 billion yuan to Baidu's revenue, up 3% year on year, and non online marketing business contributed 6.8 billion yuan to Baidu's revenue, up 6% year on year, mainly driven by smart cloud business.
However, iQIYI's total revenue in the first quarter was 7.9 billion yuan, down 5% year on year; The net profit attributable to the parent company was 655 million yuan, up 6% year on year.
In the first quarter, iQIYI's member service income declined significantly, but the financial report did not disclose the specific number of members. In this regard, Gong Yu, the founder and CEO of iQIYI, said that the number of members is only a partial indicator of the development of member business, and overemphasizing this number will interfere with daily work.
Guan Gongyu said that the ARM value (i.e. monthly average single member income) still has room for improvement for a long time. In the future, it will continue to provide users with high-quality content, optimize member rights and strengthen the construction of member loyalty, and encourage users to subscribe to long-term and high-level member services.
Duan Youqiao, senior vice president of iQIYI in charge of iQIYI member business, explained that since 2022, iQIYI has always emphasized that the core goal of member business is to maximize long-term member income. At the current stage of development, the indicators to measure the development and health of member business are no longer limited to the performance of the number of members. The troika driving member business includes ARM, member life cycle and member size, which will eventually be reflected in member income. Taking member income as an indicator can best help investors understand the progress of member business.
In the field of automatic driving, Baidu released Apollo ADFM, a large model of automatic driving, and launched the sixth generation of turnip sprint unmanned vehicle, further improving the safety of automatic driving.
On May 15, Baidu Apollo in Wuhan robot Zhixing Valley held Apollo Day 2024.
At the event site, Baidu Apollo launched the world's first large-scale model Apollo ADFM that supports L4 level automatic driving. At the same time, it launched the sixth generation of turnip sprint driverless vehicle with Baidu's sixth generation intelligent system solution and a price of only 200000 yuan.
Yin Ying, general manager of Baidu Automotive Robotics Department, released the unmanned vehicle equipped with Baidu Apollo's sixth generation automated driving system solution at the meeting. The sixth generation of Radish Run fully applied the scheme of "Baidu Apollo ADFM big model+hardware product+safety architecture", which ensured the stability and reliability of the vehicle through 10 safety redundancy schemes and 6 MRC safety strategies, The safety level is close to that of the large domestic aircraft C919.
As of April 19, the cumulative number of service orders of Radish Run exceeded 6 million; In the first quarter, about 826000 passenger services were provided, up 25% year on year.
Baidu said that it would continue to increase its investment in generative AI technology and apply it to more fields to promote the continuous growth of the company's business. Baidu will also be committed to improving operational efficiency and maintaining a healthy financial position.
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