During the 2025 Baidu World Conference, Li Yanhong remarked that in the past year, the AI sector has undergone a transformation, shifting from an 'upright pyramid' model to a more robust and sustainable large - model product framework.
In the past, the AI industry's 'upright pyramid' structure was far from healthy and sustainable. In this setup, the foundational chips dominated the value chain, capturing the lion's share of the value. In contrast, the value contributed by models and applications diminished progressively as one moved up the layers. Additionally, the industry's attention was overly concentrated on chips and models.
Li Yanhong holds the view that a thriving AI industry should conform to an 'inverted pyramid' structure. In this ideal framework, the value of models should be tenfold that of chips, and the value of applications should be a hundred times greater than that of chips.
