Cai Jing Wang·2025-08-23 11:09Core Insights - AI video generation is becoming a central battleground in the competition among large models, with a focus on balancing cost and quality [1] - Baidu's launch of Steam Engine 2.0 at the "Hot AI Conference" features significant upgrades and a drastic price reduction, making Hollywood-level special effects accessible at a fraction of the cost [1][4] - The technology advancements and price adjustments aim to attract a larger creator and commercial market [1][6] Technology Breakthroughs and Product Upgrades - The main challenge in video generation lies in achieving a unified multi-modal output, where visuals, sound, and character interactions are seamlessly integrated [2] - Steam Engine adopts an end-to-end generation approach, allowing the model to autonomously determine dialogue and emotional interactions, enhancing realism [2][3] - This integrated approach improves usability, enabling stable video generation even in complex scenarios [2][3] Cost Reduction Logic and Business Model - The price of Steam Engine has been reduced to 70% of competitors, significantly lowering the entry barrier for video generation [4][6] - Cost reductions stem from years of optimization in GPU computing and engineering, rather than subsidies [4][5] - The new pricing model allows businesses to produce high-quality videos at a fraction of traditional costs, benefiting both large brands and small enterprises [5][6] Industry Competition and Ecosystem Implementation - The AI video generation sector is experiencing intense competition, with various products emerging but facing challenges in quality and stability [7] - Baidu's focus is on enhancing the user experience in search and content ecosystems rather than merely competing on visual quality [7][8] - Steam Engine serves as a foundational capability within Baidu's ecosystem, driving growth across multiple business scenarios [7][8]