Had Jiyue Auto not collapsed this winter, many might have forgotten Baidu's investment in the company.

If we view Baidu's earlier investment in Jiyue Auto as an attempt to join the automotive manufacturing race, then as Baidu solidifies its position in the new AI race, especially with the widespread implementation of autonomous driving, it may no longer need Jiyue.

Amidst the current AI boom, automotive manufacturing has become a relic of the past.

At the time, automotive manufacturing was more about internet players seeking an escape route rather than a final destination.

One of the key reasons Baidu invested in Jiyue was to establish a presence in the automotive manufacturing arena, but it never devoted all its resources to this sector.

Time has validated Baidu's wise choice.

As competition intensifies in the automotive market, particularly when concept-driven automotive manufacturing offers little room for imagination, more manufacturers are being weeded out, and new directions are emerging.

If all goes as expected, intelligence, epitomized by autonomous driving, will be the next frontier in the automotive race.

For Baidu, which has thrived in the AI race and captured the top spot in China's AI sector through Robotaxi, Jiyue may no longer symbolize its presence in automotive manufacturing but rather serve as an experiment in its deep dive into the AI market.

One

Tesla remains an inevitable hurdle in automotive manufacturing, even as China's emerging automakers continue to challenge it.

It can be argued that even now, Tesla's every move sets a new direction for the industry.

So, where is Tesla steering the automotive race?

Observing Musk's efforts in FSD and his comprehensive support for intelligent entities, like humanoid robots, it's evident that intelligence will inevitably be Tesla's next move.

As Tesla shifts its focus to intelligence, it will undoubtedly guide the automotive market toward this new direction.

For China's emerging automakers, it's crucial to excel in fierce market competition while keeping pace with the intelligence wave.

Hence, we're witnessing the withdrawal of automakers like Jiyue Auto.

Ultimately, Jiyue struggles to compete, let alone secure a top position, making it difficult to pivot toward intelligence.

For Baidu, which is already poised on the intelligence frontier, Jiyue's underperformance is disheartening.

The widening gap between Baidu's advancing intelligent applications and Jiyue's declining automotive performance makes it challenging for Jiyue to serve as a new testing ground for Baidu.

At this juncture, Baidu no longer needs Jiyue, and stepping away could reveal a market far broader than Jiyue alone.

Two

If Jiyue's lag prevents new intersections with Baidu, explaining why Baidu no longer needs it, then Baidu's gradual AI implementation is another indication of this shift.

We all know that autonomous driving, a new AI application, has become a focal point of competition.

Tesla's intelligent driving layout has elevated this competition to new heights.

For domestic automakers, their strategic focus remains on breaking free from the red ocean of automotive competition and securing a top spot, but few engage in autonomous driving while competing hand-to-hand.

After years of accumulation, implementation, and practice, Baidu has developed its own autonomous driving methodology.

It's no exaggeration to say that Baidu now lacks not autonomous driving technology but opportunities to apply it to emerging automakers.

As Tesla shifts automotive competition into a new autonomous driving-dominated phase, domestic automakers must keep pace and even compete with Tesla in this new cycle, necessitating comprehensive support and empowerment from AI players like Baidu.

For Baidu, this represents a vast market.

Imagine if Baidu could collaborate with numerous domestic automakers, applying its autonomous driving technology to enable them to compete with Tesla on a new intelligent automotive stage. The market potential is enormous!

Thus, for Baidu, Jiyue was but a young sapling nurtured in its early days. When this sapling fails to grow into a mighty tree, Baidu won't forsake the vast automotive forest because of Jiyue.

Three

As the AI wave surges, especially as positive AI application feedback brings growing benefits to Baidu, the automotive race is no longer as vibrant as before.

For strategic investors like Baidu, the automotive race has shifted from a forward-looking investment to a less valuable proposition.

Whether it's the withdrawal of automakers or the established market structure, the current automotive race offers limited investment value.

If we summarize the current automotive race, it revolves around enhancing one's ecosystem, like Lei Jun investing in Xiaomi Automobile, or empowering automakers to make quality cars, like Huawei. In short, the automotive race now has limited investment value.

With diminishing investment value in the automotive race, Baidu must redirect its strategic focus to AI, where it has already seen returns, rather than the less valuable automotive sector.

From this perspective, Baidu also no longer needs Jiyue.

As Jiyue collapses, automotive competition will enter a new phase of in-depth shuffling.

For automakers hovering on the profit-loss line, maximizing added value and expanding market share are crucial to winning in this new arena.

On this new battlefield, they need the empowerment of AI players like Baidu.

Only then can they uncover new growth avenues and stay competitive in the automotive race.

Conclusion

As the AI wave surges, particularly with Tesla steering the automotive race toward intelligence, Jiyue, once Baidu's foray into automotive manufacturing, now holds little value or significance.

At this point, Baidu no longer needs Jiyue.

For Baidu, it's far more practical to empower other emerging automakers with its AI technology, fostering a new AI implementation and application paradigm, than to focus solely on Jiyue.

As Tesla's FSD rolls out and Baidu's autonomous driving thrives, automotive competition will inevitably shift from internetization to intelligence.

Now, Jiyue is no longer Baidu's forest. Instead, players lacking intelligence capabilities but winning in the fierce automotive competition represent Baidu's new forest.