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On March 19, <a href="/company/tencent">Tencent</a> released its financial results for the fourth quarter and full year of 2024. The company reported an 11% year-on-year (YoY) revenue increase in Q4, reaching RMB 172.45 billion (USD 24.1 billion), surpassing market expectations of RMB 168.74 billion (USD 23.6 billion). For the full year, Tencent’s revenue rose 8% to RMB 660.3 billion (USD 92.4 billion).
Gross profit for Q4 climbed 17% YoY to RMB 90.7 billion (USD 12.7 billion), driven by high-margin revenue sources such as <a href="/industry/gaming">gaming</a>, search, and WeChat Channels, as well as improved cost efficiency in cloud services. The company’s gross profit margin expanded from 50% to 53% YoY. Cost of revenue increased 5% to RMB 81.7 billion (USD 11.4 billion), primarily due to rising content costs from gaming and higher bandwidth and server expenses.
Tencent attributed its double-digit Q4 revenue growth to artificial intelligence-powered upgrades in its advertising platform, increased user engagement in WeChat Channels, and the continued success of its core gaming titles. In recent months, the company restructured its AI team to focus on product innovation and AI model development while increasing capital expenditure on AI and AI-native product marketing.
Revenue from Tencent’s value-added services segment rose 14% YoY in Q4 to RMB 79 billion (USD 11 billion). International gaming revenue grew 15% to RMB 16 billion (USD 2.2 billion), or 16% on a constant currency basis, bolstered by strong performances from Brawl Stars, PUBG Mobile, and the early access launch of Path of Exile 2.
Tencent’s domestic gaming revenue surged 23% to RMB 33.2 billion (USD 4.6 billion), benefiting from a low base in the prior year, higher revenue from Honor of Kings, Game for Peace, and Valorant, and contributions from newly launched titles such as Dungeon &amp; Fighter: Origins and Delta Force.
Social networking revenue rose 6% to RMB 29.8 billion (USD 4.2 billion), driven by increased sales of virtual items in mobile games, growth in paid music subscriptions, and rising service fees from minigames on WeChat.
Advertising services revenue jumped 17% to RMB 35 billion (USD 4.9 billion), reflecting strong demand for ad placements on WeChat. Most major industries increased their advertising spend during the quarter.
Fintech and business services revenue increased 3% to RMB 56.1 billion (USD 7.9 billion), with fintech growth driven by wealth management and consumer lending, while commercial payment revenue remained largely stable. Business services revenue rose due to higher technology service fees from merchants and increased revenue from WeCom.
For full-year 2024, Tencent’s value-added services revenue grew 7% to RMB 319.2 billion (USD 44.7 billion). International gaming revenue reached RMB 58 billion (USD 8.1 billion), up 9% YoY in both reported and constant currency terms, supported by PUBG Mobile and Supercell’s titles. Domestic gaming revenue grew 10% to RMB 139.7 billion (USD 19.6 billion), driven by Valorant, Naruto, Teamfight Tactics, League of Legends: Wild Rift, and new contributions from Dungeon &amp; Fighter: Origins and Delta Force. Tencent increased its number of evergreen games from 12 in 2023 to 14 in 2024, reflecting the longevity of its major titles.
Social networking revenue rose 2% to RMB 121.5 billion (USD 17 billion), supported by increased revenue from paid music and long-form video subscriptions, higher sales of virtual items in mobile games, and minigame service fees. These gains were partially offset by declining live streaming revenue from music and gaming. Tencent Video’s paid subscriber count reached 113 million, while Tencent Music’s paid user base grew to 121 million. Tencent Video operates internationally as WeTV.
Advertising services revenue climbed 20% to RMB 121.4 billion (USD 17 billion), fueled by strong demand for ad placements across WeChat and Tencent’s AI-driven ad platform upgrades. Ad spending rose across most major sectors, particularly gaming, e-commerce, education, and internet services.
Fintech and business services revenue increased 4% to RMB 212 billion (USD 29.7 billion), supported by growth in wealth management and commercial payments. Business services revenue rose due to higher WeCom revenue and increased technology service fees from merchants.
Tencent’s annual cost of revenue declined 2% to RMB 311.1 billion (USD 43.6 billion) as the company reduced expenses related to live streaming revenue-sharing, long-form video content, and cloud project deployment.
Gross profit rose 19% YoY to RMB 349.2 billion (USD 48.9 billion), supported by growth in high-margin revenue streams such as domestic gaming, search, minigames, and WeChat Channels. Profitability also improved in Tencent’s cloud and long-form video businesses, with the company’s gross margin expanding from 48% in 2023 to 53% in 2024.
For value-added services, gross profit grew 12% to RMB 181.7 billion (USD 25.4 billion), with a margin increase from 54% to 57%, supported by higher-margin domestic gaming and minigame service fee revenue, along with cost optimization in long-form video content.
Gross profit for advertising services surged 31% to RMB 67.2 billion (USD 9.4 billion), with a margin increase from 51% to 55%, reflecting the expansion of high-margin ad placements in WeChat Channels and Tencent’s search platform.
Fintech and business services gross profit climbed 24% to RMB 99.7 billion (USD 14 billion), with a margin improvement from 40% to 47%, aided by growth in wealth management, WeCom, and merchant technology service fees, as well as cost efficiencies in cloud services.
Sales and marketing expenses rose 6% YoY to RMB 36.4 billion (USD 5.1 billion), reflecting increased promotional efforts for new content releases. These expenses remained stable at 6% of total revenue.
General and administrative expenses grew 9% to RMB 112.7 billion (USD 15.8 billion), primarily due to increased R&amp;D spending, particularly on AI initiatives, and higher employee costs. These expenses remained steady at 17% of total revenue.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3212952228646019">article</a> was written by Wang Yuchan for 36Kr.

Tencent surpasses Q4 2024 revenue forecasts with gaming and ad growth

Tencent

WeChat

East Asia

On March 18, Chery hosted a conference in Wuhu, Anhui, unveiling advancements in smart driving, humanoid robotics, and intelligent cockpit systems. At the center of the event was Falcon, the company's next-generation smart driving system, which Chery plans to implement across all its brands and models by 2025.
According to Gao Xinhua, executive vice president of Chery, Falcon's intelligence stems from an end-to-end large model and sensor fusion technology, enabling precise environmental perception and millisecond-level decision-making. The result? A smart driving assistant designed to handle an extensive range of real-world scenarios.
The system is structured into three tiers:
<ul>
<li aria-level="1">Falcon 500, which integrates an artificial intelligence-powered driving system with navigation-on-pilot (NOP), memory-based urban navigation, and automated memory parking.</li>
<li aria-level="1">Falcon 700, which expands on the 500’s features with increased computing power, supporting highway and urban navigate-on-autopilot (NOA), valet parking, and vehicle-to-vehicle communication.</li>
<li aria-level="1">Falcon 900, the most advanced version, leverages vision-language-action (VLA) and world models to enable Level 3 autonomous driving, enabling a more refined hands-free experience.</li>
</ul>
To demonstrate Falcon’s capabilities, Chery deployed a fleet of self-driving vehicles, which successfully crossed the Baishazhou Yangtze River Bridge in full NOP-assisted mode, with no human intervention.
Chery is expanding its smart driving technology across its vehicle lineup. By the end of 2025, more than 30 models, including fuel-powered, hybrid, extended-range, and pure electric vehicles, will integrate the Falcon smart driving system. The system is being developed concurrently for international markets to facilitate broader adoption.
The smart edition of the Chery eQ1 highlights the application of smart driving in entry-level EVs, offering autonomous parking, remote parking, and highway NOA navigation at a price point of RMB 60,000 (USD 8,400).
According to Chery, Falcon’s autonomous driving capabilities have been adapted to accommodate varied driving conditions, including European roundabouts, Middle Eastern desert highways, and densely populated roads in Southeast Asia. The company has also obtained European Union certifications for vehicle cybersecurity and over-the-air software updates. Its fleet has collectively logged 4.5 billion kilometers in autonomous driving. By 2026, Chery plans to introduce higher-level autonomous vehicles to the European market.
Flagship models will lead the rollout. The Exeed Sterra ET (marketed internationally as Exeed Exlantix ET) will come standard with Falcon 700, equipped with 30 sensors and dual Nvidia Drive Orin chips. The iCar V23 will feature Falcon 500, supporting highway NOA and autonomous parking via a 22-sensor array, while the Tiggo 9, a fuel-powered SUV, will also integrate Falcon 500.
Chery has also extended Falcon’s smart driving capabilities to off-road environments, complementing its highway and urban navigation functions. The system is designed to operate beyond paved roads, supporting point-to-point navigation across varying terrains.
Beyond smart driving, Chery is developing robotics, flying cars, robotaxi services, and unmanned minibuses, reflecting its focus on AI-driven mobility solutions.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3213298432035713">article</a> was written by Han Yongchang for 36Kr.

Chery unveils Falcon smart driving system, set to power 30 models by 2025

Transportation

Autonomous Vehicles

Electric Vehicles

Mobility

… exceed 13 trillion kilowatt-hours by 2030, with annual growth rates of 4–6% from 2025 onward. The residential solar market remains underpenetrated, with a potential capacity of over 1,600 GW, yet current installations represent only 10% of this total.
Although market opportunities remain vast, companies must prepare for a future where power pricing is fully market-driven. Once the pricing mechanism completes its transitionary role, renewable energy operators will need to rely on operational excellence and strategic planning to remain competitive.
For leading residential solar companies like Chint Anneng, document No. 136 represents an opportunity.
Chint Anneng has already prepared for this shift with a three-tier strategy:
<ul>
<li aria-level="1">Short-term: Strengthening its non-residential solar business to maintain stable revenue streams.</li>
<li aria-level="1">Mid-term: Expanding into village-wide solar projects, smart microgrids, and virtual power plants to diversify income sources.</li>
<li aria-level="1">Long-term: Developing capabilities in green certificates, renewable power trading, and retail electricity sales to build a vertically integrated power trading business.</li>
</ul>
The company has already executed green power transactions in multiple provinces, including Jiangsu, Zhejiang, and Guangdong. In October 2024, its subsidiary in Jiangsu completed the province’s first residential solar green power trade.
As China’s power market continues to evolve, companies with a forward-thinking approach and comprehensive business strategies will be best positioned to navigate the transition and seize new growth opportunities.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3205724326486528">article</a> was written by 36Kr Caijing.

Who stands to gain from China’s renewable energy pricing reforms?

Deep Tech

Energy

On March 18, Hyptec, an electric vehicle brand under <a href="/company/gac">GAC Group</a>, launched its smart driving initiative and opened presales for its latest SUV, the Hyptec HL. Priced from RMB 279,800 (USD 39,172), the HL is designed as a luxury electric SUV with a six-seat layout, competing with models like the Li L8 and Aito M8.
Former Ferrari designer Pontus Fontaeus led the HL’s design, drawing inspiration from high-end yachts in California. The vehicle measures 5,126 millimeters in length, 1,990 mm in width, and 1,750 mm in height, with a 3,088-mm wheelbase.
<figure id="attachment_152287" aria-describedby="caption-attachment-152287" style="width: 1024px" class="wp-caption alignnone"><img loading="lazy" decoding="async" class="size-large wp-image-152287" src="https://console.kr-asia.com/wp-content/uploads/2025/03/Hyptec-HL-Exterior-Front-1024x576.jpg" alt="Image of the Hyptec HL electric vehicle." width="1024" height="576" srcset="https://console.kr-asia.com/wp-content/uploads/2025/03/Hyptec-HL-Exterior-Front-1024x576.jpg 1024w, https://console.kr-asia.com/wp-content/uploads/2025/03/Hyptec-HL-Exterior-Front-300x169.jpg 300w, https://console.kr-asia.com/wp-content/uploads/2025/03/Hyptec-HL-Exterior-Front-768x432.jpg 768w, https://console.kr-asia.com/wp-content/uploads/2025/03/Hyptec-HL-Exterior-Front-1536x864.jpg 1536w, https://console.kr-asia.com/wp-content/uploads/2025/03/Hyptec-HL-Exterior-Front-480x270.jpg 480w, https://console.kr-asia.com/wp-content/uploads/2025/03/Hyptec-HL-Exterior-Front.jpg 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption id="caption-attachment-152287" class="wp-caption-text">Image of the Hyptec HL electric vehicle. Image and header image source: Hyptec.</figcaption></figure>
One of the HL’s key features is its nighttime visibility system, which Hyptec claims is the first of its kind in the industry. Using military-grade technology, the system expands the driver’s night vision range by 300%. It operates alongside "sentinel mode," which is designed to enhance safety in various weather conditions. The vehicle is also equipped with the GAC Self-Driving (GSD) system, which enables hands-free driving in specific scenarios. The system integrates LiDAR and high-definition mapping to support navigation in different environments, including highways and urban roads.
The HL is powered by an 800-volt ultrafast charging platform, which can add 400 kilometers of range in about ten minutes. Its all-electric range is rated at 750 km under the China Light-Duty Vehicle Test Cycle (CLTC) standard.
Inside, the HL offers a six-seat configuration, which is less common in its segment. Features include dual “zero-gravity” seats, a smart cockpit interface, and an AKG surround sound system. Hyptec markets the HL as a family-oriented vehicle designed for both parents and children.
To encourage early orders, Hyptec is offering several presale incentives:
<ul>
<li aria-level="1">A RMB 999 (USD 139.9) deposit can be used to deduct RMB 5,000 (USD 700) from the purchase price.</li>
<li aria-level="1">Customers receive a premium service package valued in the tens of thousands of RMB.</li>
<li aria-level="1">A free upgrade to 21-inch wheels.</li>
<li aria-level="1">Trade-in subsidies of RMB 10,000–20,000 (USD 1,400–2,800), with additional benefits for existing GAC customers.</li>
</ul>
Hyptec is also launching a smart driving test program, selecting 100 GAC vehicle owners to use the HL for one year at no cost. Participants will test the GSD system and the “smart digital chassis” to evaluate smart driving features in daily use.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3212905435761797">article</a> was written by Wang Zhaopu for 36Kr.

GAC’s Hyptec HL debuts with night vision system and yacht-inspired design

When Sony Group announced a leadership reshuffle, it was not the choice of president Hiroki Totoki taking over the role of CEO as well that got heads to turn. Instead, the promotion of Lin Tao as CFO, marking the first time a woman was chosen for that position at the group, caught the attention of executives.
"The most interesting part of this personnel change is the CFO position," a Sony Group executive said.
According to a January announcement, Totoki will <a href="https://asia.nikkei.com/Business/Media-Entertainment/Sony-Group-appoints-President-Totoki-as-CEO-to-push-IP-businesses" target="_blank" rel="noopener">take over as CEO</a> from Chairman Kenichiro Yoshida in April. Both men have something in common on their resumes: having spent time as CFO.
CFO, a title Totoki currently holds, is considered a stepping stone toward becoming the head of Sony Group. Not only does the position act as the group's treasurer, it oversees a wide-ranging business portfolio that includes video games, movies and semiconductors.
Many thought Naoya Horii, a senior vice president in charge of corporate planning, would land the role since he is considered Totoki's trusted aide. But the position went to Tao, who will also begin her new role in April.
Tao first joined Sony in 2000, working at the gaming unit responsible for the PlayStation, as well as in the smartphone business. In 2016, Tao was placed in the CEO office, where she worked closely with former president Kazuo Hirai and his successor Yoshida.
In 2021, she began her current role as vice president in charge of finance, corporate development and strategy at Sony Interactive Entertainment (SIE), the subsidiary in charge of the gaming business.
In that capacity, Tao was instrumental in closing multiple acquisitions, including the USD 3.7 billion deal for Bungie, the US game developer behind the Destiny and Halo franchises.
When Totoki took charge of SIE as chairman in 2023, and then as interim CEO the following year, Tao served as his top deputy as he sought to restructure the financially distressed gaming business.
Now Sony Group is pursuing a growth strategy centered on the entertainment segment.
"The 21st century is the era of entertainment," Yoshida <a title="" href="https://asia.nikkei.com/Business/Media-Entertainment/Sony-lifts-profit-forecast-on-gaming-business-growth" target="_blank" rel="noopener">said at an earnings call</a> in February. "And the major bearer of that trend are networks."
With Tao intimately familiar with the gaming business, a sector that delivers content to consumers via networks, she was seen as a strong candidate for CFO.
Totoki said diversity is essential for corporate growth during the earnings briefing.
"We have diverse human resources and human business sectors … by merging them we can create something brand new," Totoki said.
Tao has received praise for her business acumen. She is said to be unafraid to voice dissenting opinions to top management and is described as a global talent with a deep understanding of business.
People have also said Tao is logical and thoughtful, and has a knack for putting people at ease. She has a gift for connecting with people from different backgrounds, according to people who know her.
"A female CFO would have an impact in terms of diversity," said a Sony Group executive.
Tao's promotion is meaningful because "they probably wouldn't make her CFO unless they had the intention of making her the next president," said a former group executive. However, there are other potential candidates for that position, such as chief digital officer Tsuyoshi Kodera and Hideaki Nishino, SIE's incoming president and CEO.
"The appointment of the next president is still a long way off, and we don't know if Tao will be the president," a current Sony Group executive said.
When Hirai became CEO in 2012, he made structural reforms. Yoshida, who took over as CEO in 2018, shook up the business portfolio and relaunched Sony Corp. as Sony Group.
As the newly appointed CEO, Totoki will be expected to lead the company to growth.
In 1995, Sony became the first Japanese corporation to establish the CFO position, which was assumed by Tamotsu Iba.
A CFO "is a good partner to the CEO and the guardian of corporate value," Iba wrote. Tao in turn has said there is no perfect person for a role, but there are perfect teams.
This article first appeared on <a href="https://asia.nikkei.com/Spotlight/Gender/Sony-s-first-woman-CFO-pick-Lin-Tao-follows-path-of-company-leaders">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing partnership with <a href="https://www.kr-asia.com/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/">Nikkei</a>.

Sony's first woman CFO pick, Lin Tao, follows path of company leaders

Sony

… Alphabet’s commitment to cybersecurity and is expected to close in 2026, pending regulatory approval. However, it is likely to face scrutiny, particularly regarding competition in cloud security. Alphabet has stated that Wiz’s products will remain available on rival platforms to address potential concerns.
Alphabet previously made an unsuccessful USD 23 billion bid to acquire Wiz.
whereRelatedArticle
<h3>Binance, Amber International, Insilico, and more made recent headlines:</h3>
<ul>
<li aria-level="1">Binance, the world’s largest cryptocurrency exchange, received a USD 2 billion investment from Abu Dhabi-based technology investor MGX.</li>
<li aria-level="1">Amber International, a Web3 financial solutions and infrastructure provider, began trading on Nasdaq under the ticker “AMBR” following its merger with iClick Interactive Asia Group.</li>
<li aria-level="1">Insilico Medicine, a drug discovery company, secured USD 110 million in an oversubscribed Series E funding round led by Value Partners Group, with support from new industry and technology-focused investors. Existing backers also participated in the round.</li>
</ul>
If there are any news or updates you'd like us to feature, get in touch with us at: <a href="mailto:hello@kr-asia.com">hello@kr-asia.com</a>.
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Deals in brief: Grab reportedly in GoTo takeover talks, Kyberlife and Bluesify raise funding, Fore Coffee targets Indonesia IPO, and more

Gojek

Grab

Tokopedia

GoTo

Venture Capital

Private Equity

Investment

Merger &amp; Acquisition

Singapore

Malaysia

Indonesia

Hong Kong

… hybrids over three times the range of traditional gasoline cars, driving the company’s overall 41.3% sales growth.
But pure EVs remain the ultimate goal of electrification. That’s why BYD is doubling down on its super e-platform.
The Han L and Tang L will be the first to feature this platform. These flagship models, part of BYD’s Dynasty series, combine a new design language with the super e-platform, the DiPilot 300 smart driving system, and the DiSus-C chassis system.
The Han L targets competitors like <a href="https://kr-asia.com/chinas-xiaomi-jumps-into-ev-market-battle-with-gusto">Xiaomi’s SU7</a>, while the Tang L positions itself against Li Auto’s L6 and future family-focused EVs like the i6.
BYD’s biggest challenge remains selling high-end EVs in a market where plug-in hybrids dominate.
At present, ultrafast charging seems to be the only way to make pure EVs more practical for everyday use.
But when will this technology reach BYD’s mass market models like the Qin and Song series? The company has not made an official statement, but engineers at the event told 36Kr that “it’s only a matter of time.”
BYD’s DiPilot 300 system took one and a half years to move from premium models to mainstream vehicles. But that was a software-driven upgrade. Megawatt charging is hardware-dependent, meaning adoption will likely take longer—perhaps two to three years.
Beyond battery upgrades, entire vehicle systems—from power control to drivetrain components—must be optimized for high-voltage operation, adding costs in the thousands of dollars per unit.
BYD’s edge lies in its vertical integration. With in-house kilovolt architecture and high-voltage component manufacturing, it can reduce costs more effectively than competitors.
Still, mass adoption will require a full model refresh and greater economies of scale. With the Han L, Tang L, and upcoming Song L and Qin L, BYD is gradually phasing out older models to accelerate this transition.
But without a robust charging network, even the fastest-charging EVs won’t reach their full potential, making the next two to three years critical.
By then, megawatt charging could be mainstream, while solid-state batteries may still be years from commercialization.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3211032618648710">article</a> was written by Han Yongchang for 36Kr.

BYD’s new EVs could charge faster than your smartphone

Batteries

… advisory.</li>
<li aria-level="1">No requirement for a physical office, with access to shared or virtual office spaces at no additional cost.</li>
<li aria-level="1">Dedicated Chinese-speaking support staff, offering tailored assistance to Chinese enterprises.</li>
</ul>
For companies eyeing the Middle East market, the UAE remains a strategic, business-friendly destination with significant advantages in taxation, infrastructure, and market accessibility. By leveraging the right strategies and resources, businesses can establish a strong foothold in this dynamic region.

Expanding to the UAE? Here are 5 things businesses need to know

On March 16, <a href="/company/baidu">Baidu</a> officially launched <a href="https://kr-asia.com/baidu-slashes-ai-costs-with-ernie-4-5-and-x1-taking-on-openai-and-deepseek">Ernie X1 and Ernie 4.5</a>, two advanced large models now available for free on the Ernie Bot website and poised to become the next key drivers of artificial intelligence adoption.
From <a href="/company/openai">OpenAI</a> to Grok, Google’s Gemini, and beyond, AI’s major players are constantly shuffling. The one constant? AI applications are still in the early stages of commercialization.
Baidu’s latest rollout signals its intention to prepare for the anticipated AI app boom in 2025, facilitated by multimodal AI.
Ernie 4.5 introduces a breakthrough in native multimodal learning, improving comprehension across text, images, and logic-based tasks. By integrating joint modeling across multiple modalities, it enhances textual reasoning and logical inference. Benchmark results suggest that Ernie 4.5 outperforms OpenAI’s GPT-4.5—while offering API access at just 1% of GPT-4.5’s cost.
Meanwhile, Ernie X1 is an advanced reasoning model positioned against <a href="https://kr-asia.com/a-new-ai-disruptor-businesses-rush-to-integrate-deepseek-r1">DeepSeek-R1</a>. Baidu claims X1 offers comparable capabilities in multiple benchmarks, with pricing at only half that of DeepSeek-R1. Unlike traditional models focused on content generation, X1 is engineered for decision-making, pushing AI beyond a response tool to a more interactive and analytical agent.
For instance, in narrative generation tests, X1 can craft intricate murder mystery plots from a simple background prompt. It also excels at mimicking the sharp, opinionated tone prevalent in Chinese social media, making it a potential tool for content creators seeking more engaging, localized AI-generated responses.
Since launching Ernie 4.0, Baidu has rapidly built an AI ecosystem, integrating AI-powered search, maps, cloud storage, and document services. Back in 2021, the company transitioned from its strategy of integrating AI and cloud to prioritizing AI-first architecture.
The free release of Ernie 4.5 and X1 reflects cost reductions driven by technological advancements. This move also signals three key industry trends:
<ol>
<li aria-level="1">Baidu has a rare advantage as one of the few AI firms with a four-layer architecture approach, encompassing foundational research, framework, model, and application. Its deep expertise in AI chips and infrastructure supports long-term commercialization efforts.</li>
<li aria-level="1">China’s tech giants are not just competing on models but also model-as-a-service (MaaS) platforms. Enterprises and developers can now access Ernie 4.5 APIs via Qianfan, while Ernie X1 will be added soon.</li>
<li aria-level="1">AI adoption in China has reached a tipping point as businesses grow eager to embrace new AI technologies. Baidu, as a leader in the space, can lower entry barriers for developers and enterprises to accelerate AI industrialization.</li>
</ol>
A recent evaluation demonstrated Ernie 4.5's notable ability to reduce AI hallucinations. This improvement stems from FlashMask dynamic attention masking for improved accuracy, a heterogeneous multimodal mixture-of-experts (MoE) for optimized reasoning, and a self-feedback enhanced post-training process.
In testing, when presented with a single movie screenshot, Ernie 4.5 was able to accurately identify the film.
Its chart analysis and reasoning capabilities also highlight its enhanced multimodal generation abilities.
The industry’s interest in multimodal large models is no secret.
By jointly modeling images, video, and text, AI can unify semantic understanding and overcome the fragmented information issues of conventional chatbot-style models.
For example, model context protocol (MCP) has drawn significant attention in “vibe design” on Blender, where AI facilitates iterative design refinements through dialogue-based interactions, making AI more of a controlled creative tool rather than a passive responder.
Similarly, Gemini’s multimodal capabilities in Google AI Studio—handling multi-turn conversations, image generation, and real-time editing—have positioned it as a go-to AI for developers.
Baidu's Ernie 4.5 is ostensibly China’s first native multimodal model. Meanwhile, Ernie X1, also multimodal, particularly excels in Chinese Q&amp;A, literature generation, document drafting, logical reasoning, complex calculations, and tool usage.
X1's strengths are rooted in progressive reinforcement learning, improving creativity, search, tool usage, and logical inference across multiple domains. Additionally, its end-to-end training based on reasoning and action chains has enhanced its ability to perform deep search and tool calls, which are areas where many AI models still struggle.
On the cost side, PaddlePaddle and Ernie have implemented optimizations in model compression, inference engines, and system architecture, achieving deep compression and accelerated inference. This is why X1’s costs are only half those of DeepSeek-R1.
As the AI industry enters the era of deep reasoning, falling costs have eliminated one of the biggest barriers to adoption.
The two major challenges that enterprises face in AI deployment are high technical barriers and unsustainable costs.
Small and midsized businesses often struggle with AI costs, while larger enterprises, despite having technical teams, face high training expenses and complex adaptation challenges.
For years, the feasibility of AI adoption was unclear, leading to inefficient investments. But as AI models continue to improve, companies across industries are now fully embracing AI-driven transformation.
Baidu’s strategy of lowering costs and raising accessibility with Ernie 4.5 and X1 is aimed at addressing these pain points.
whereRelatedArticle
Baidu’s cloud AI business has steadily grown over the past year, proving that more enterprises are leveraging MaaS platforms and foundational AI models to build applications without excessive upfront investment.
In March 2023, Baidu was the first Chinese firm to declare its commitment to rebuilding all of its products with AI. Since then, the company has invested heavily in next-gen foundational models, culminating in today's native multimodal Ernie models.
2025 could be the breakout year for enterprise AI adoption, where precision and accuracy will be paramount. Baidu, with Ernie 4.5 and X1, could yet be the one leading the charge.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3210023586514052">article</a> was written by Xiao Xi for 36Kr.

Baidu lowers the cost of AI with Ernie 4.5 and X1

Artificial Intelligence

Artificial intelligence