Baidu reportedly integrates Wenku and Wangpan into a new business group and plans to launch new AI applications

According to reports from mainland media, Baidu (9888) has reorganized Baidu Wenku and Baidu Wangpan into a new business group named "Personal Super Intelligent Business Group." This business group is led by Wang Ying, Baidu's Vice President and head of the Wenku and Wangpan divisions, who reports directly to Baidu Chairman and CEO Li Yanhong. According to a report by the domestic media outlet "Caijing," citing relevant Baidu personnel, Wangpan and Wenku are currently Baidu's AI-driven businesses that are performing relatively well, and new AI applications will be launched in the future to develop this part of the business into a new growth curve. It was also noted that Wang Ying has long wanted to separate this part of the business, and this business adjustment was expected and "logical." Currently, Baidu has business groups such as MEG (Mobile Ecosystem Group), ACG (Intelligent Cloud Group), and IDG (Intelligent Driving Group). Baidu Wenku and Baidu Wangpan originally belonged to MEG. Over the past two years, the business collaboration between the Wangpan and Wenku teams has increased, and they have jointly launched AI office applications including Free Canvas and GenFlow. Weakening Cash Generation Ability of Advertising Business The report indicates that Baidu has relied on its mobile ecosystem (advertising business) for cash flow over the past three years, while the intelligent cloud business has grown into a new growth curve. However, after 2025, Baidu faces the core challenge of declining revenue from its advertising business and weakening cash generation ability. In the first half of 2025, advertising revenue was 34.8 billion yuan, a year-on-year decline of 11.1%. With advertising revenue under pressure and cash flow certainty decreasing, Baidu needs to allow more businesses to bear growth and profit expectations. The intelligent cloud, AI applications (including Wenku and Wangpan), and even AI chip businesses are all considered to become Baidu's new growth curves. Its AI chip subsidiary Kunlun Core has previously submitted a listing application to the Hong Kong Stock Exchange. Wenku and Wangpan Growth Remains Impressive According to reports, Wenku and Wangpan are two of Baidu's businesses that are still maintaining impressive growth, with their main monetization method being software subscriptions. Subscription-based AI applications are viewed internally at Baidu as one of the more certain directions. The business logic of Wenku and Wangpan is significantly different from Baidu's past advertising business in the mobile ecosystem, meeting the conditions for being spun off into independent business groups. During last year's third-quarter earnings conference call, Baidu's management revealed that Baidu Wangpan and Baidu Wenku had nearly 300 million monthly active users. In the third quarter of last year, Baidu's AI applications (including Wenku, Wangpan, digital employees, etc.) generated 2.6 billion yuan in revenue