In-depth Analysis of the Commercial Monetization Path of Wenxin Large Model

Based on the latest financial data and market analysis, I will provide an in-depth analysis of

:

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• Call Volume Surge
  : In December 2024, Wenxin Large Model’s daily call volume reached
  1.65 billion
  , a year-on-year increase of
  33x
  (from 50 million).
• User Scale
  : The number of Wenxin Yiyan users exceeded
  430 million
  .
• Search Penetration
  : AI search has covered
  22%
  of Baidu’s search queries and reached
  83%
  of Baidu App’s monthly active users.

According to Baidu’s 2024 Q4 financial report [1]:

• Smart Cloud Business
  : Q4 revenue increased by 26% year-on-year, becoming the core growth engine.
• Non-online Marketing Revenue
  : Increased by 18% year-on-year to RMB 9.8 billion, mainly driven by the smart cloud business.
• Overall Online Marketing Revenue
  : Decreased by 7% year-on-year to RMB17.9 billion; AI business effectively offset the weakness in the advertising business.

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• Provides API services for DeepSeek and Wenxin Yiyan 4.5 models.
• Bocom International expects cloud business revenue to grow by
  20%
  in 2025 [1].
• AI infrastructure and cross-selling opportunities for enterprise customers continue to increase.

• Monetization Timeline
  : Expected to officially launch in the second half of 2025 [1].
• Currently,
  22%
  of search results are generated by AI.
• HSBC expects the effect of AI search transformation to appear in the second half of this year, and advertising revenue is expected to resume positive growth.

• Baidu Docs AI
  : MAU reached
  94 million
  , with a sequential increase of
  83%
  and a year-on-year increase of
  216%
  .
• Subscription Revenue
  : Increased by
  21%
  year-on-year; the subscription model has been proven effective.

• Wenxin Yiyan will be open for free starting April1
  [1] to expand the user base.
• Achieve subsequent monetization through ecological effects and user stickiness.

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##3. Evaluation of Monetization Path Clarity

Dimension	Evaluation	Explanation
Income Growth Certainty	⭐⭐⭐⭐	Cloud business grows at a high speed of26%, forming scale effect.
Business Model Maturity	⭐⭐⭐⭐	Three paths (MaaS+Subscription+Search Advertising) are clear.
Technology Moat	⭐⭐⭐	Facing challenges from new competitors like DeepSeek.
Monetization Rhythm	⭐⭐⭐⭐	AI search monetization progresses as planned in the second half of the year.

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##4. Risks and Challenges

###⚠️ Intensified Competition

• WeChat is conducting a gray-scale test on DeepSeek integration [1], posing a threat to the search market.
• Daiwa Securities downgraded the rating to “Outperform”, worrying that fierce AI competition will lead to meager profits for infrastructure suppliers.

###⚠️ Profit Margin Pressure

• HSBC pointed out that the revenue mix is shifting to low-margin cloud business [1], and overall profitability is under test.
• Adjusted EBITDA decreased by
  23.2%
  year-on-year to RMB
  6.954 billion
  .

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##5. Conclusion

, mainly reflected in:

1. ✅
   Scale foundation established
   :1.65 billion daily calls +430 million users form a strong ecosystem.
2. ✅
   Diversified monetization paths
   :A three-dimensional revenue structure of MaaS subscription +AI search advertising +value-added services.
3. ✅
   Growth inflection point approaching
   :Cloud business grows at 26% +AI search monetization starts in the second half of the year.
4. ⚠️
   Need to pay attention to competition
   :The rise of new forces like DeepSeek brings uncertainty.

, believing that the value of AI cloud as the is emerging, and autonomous driving is expected to become the [1].

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:[1] Baidu2024 Q4 Results and Brokerage Rating Summary (https://hk.finance.yahoo.com/news/综合大行于百度09888-HK公布业绩后最新评级-040237080.html)