On November 13th, during the Baidu World Conference, Li Yanhong, the Chairman of Baidu, voiced his perspectives on the ongoing debate surrounding the AI bubble. He highlighted that the configuration of the AI industry is undergoing a transformation, evolving from a 'traditional pyramid' to an 'upside-down pyramid'.

In the past, the AI industry was structured like a traditional pyramid, with chips forming the broad base and representing the lion's share of the value. The economic returns from models and applications constructed atop these chips diminished progressively as one moved up the pyramid. This unbalanced industrial framework was deemed unhealthy and unsustainable, fueling market anxieties about the existence of an AI bubble.

Li Yanhong elaborated that the 'upside-down pyramid' model signifies a scenario where, irrespective of the profits amassed by chip manufacturers, the models developed using these chips are expected to generate tenfold the value. Furthermore, the applications crafted based on these models should yield a hundredfold increase in value. This, he argued, epitomizes a thriving and sustainable industrial ecosystem.