Core Insights - Baidu has launched an upgraded version of its video generation model "Steam Engine," which includes Turbo, Lite, Pro, and audio versions, offering tiered membership services at prices as low as 70% of similar products in the industry [1][3][4] - The market for AI-generated content (AIGC) is significant, with Baidu's Steam Engine positioned to meet application demands and enhance user retention in search scenarios [1][6] - The cost of video production has drastically decreased, with examples showing that traditional methods could exceed 1 million yuan, while using the Steam Engine can reduce costs to as low as 330.6 yuan for 120 video segments [3][4] Product Features - The Steam Engine is an I2V model that integrates audio and video generation, allowing for the creation of synchronized environmental sounds and character voices from a single image and prompt [3][4] - The pricing for the Turbo audio version is set at 1.4 yuan per 5 seconds, which is competitive but not the lowest in the market [5][4] Market Context - Baidu's entry into the AI video generation market comes after competitors like Sora and Kuaishou's Keling, indicating a competitive landscape [5][1] - The global AI video generator market is projected to grow from $614.8 million in 2024 to $2.5629 billion by 2032, with a compound annual growth rate of 20% from 2025 to 2032 [7] Financial Performance - In Q2 2025, Baidu reported revenues of 32.7 billion yuan, with core online marketing revenue at 16.2 billion yuan and AI new business revenue exceeding 10 billion yuan for the first time, reflecting a 34% year-on-year growth [8][7]
百度7折价入局视频生成赛道