Just received breaking news, time is tight, here’s a simple first take;
1/ Before Tencent integrated deepseek, the daily search volume was 600 million times (data from management), generating only about 1 billion RMB in advertising revenue (WeChat remains restrained in monetization); in comparison, Baidu's daily search volume is around 1.5 billion times (6.5 times per person per day), generating about 65 billion RMB in revenue; Douyin's search revenue is also at this level.
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/96c3f9dc-9004-467f-8674-9d1c2bb631bd.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/96c3f9dc-9004-467f-8674-9d1c2bb631bd.png"/>
2/ The emergence of Doubao + Kimi provides a great opportunity for Tencent to accelerate search monetization; a few days ago, Bernstein made some speculations based on this idea;
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/b4c0644b-7eb6-43c6-b811-1f5da3e03110.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/b4c0644b-7eb6-43c6-b811-1f5da3e03110.png"/>
3/ As model capabilities increasingly converge (after deepseek was open-sourced, everyone basically achieved model parity), the data vs. ecosystem-driven flywheel needs to accelerate significantly (this may also be why Tencent needs to set aside Hunyuan at this time and directly call deepseek to compete for positioning); WeChat, as a super AI wrapper, has data (massive data like public accounts and Moments), application scenarios (for example, after viewing travel guides, it can be shared to Moments and friend group chats), and ecosystem (Tencent's advertising infrastructure remains strong, not to mention WeChat's mini-stores);
4/ Habit vs. mindset; the most memorable instance is when Alipay was &#34;ambushed&#34; by WeChat red envelopes; once you get used to sending red envelopes via WeChat, you won't use other software to send them. From this perspective, applications like Doubao may currently be in a relatively dangerous state. The competition has suddenly shifted from ByteDance Doubao vs. Tencent Hunyuan to ByteDance Doubao vs. WeChat + deepseek; ByteDance's first-mover advantage has suddenly disappeared.
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/d5b38aef-a47c-4959-ae9d-8dab9fac7f5d.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/d5b38aef-a47c-4959-ae9d-8dab9fac7f5d.png"/>
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/1af70323-6e83-4dfa-a32c-f9e0afc74cc5.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/1af70323-6e83-4dfa-a32c-f9e0afc74cc5.png"/>
5/ The integration of large models by Apple and WeChat is actually quite logical. I have previously written that the concepts of WeChat and Apple are the same; both are traffic businesses; one is a hardware entry point, and the other is a software entry point; as a traffic entry point, Apple opens search for Google, earning a 20% profit share; Tencent opens entry points for PDD and Meituan, earning around 20% equity;
6/ What about the increment in cloud computing? We discussed this in a previous public account article (the one from February 13), where we estimated the increment for Apple + Alibaba Cloud using a scale of 300 million in China + 1.5 times the Siri calls; however, the scale for WeChat is even more astonishing (Apple + Android); the number of WeChat openings allows for more imagination regarding the number of calls.
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/086029c4-4fb5-42bf-b595-094590e9159c.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/086029c4-4fb5-42bf-b595-094590e9159c.png"/>
Goldman Sachs' estimation for Alibaba Cloud;
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/10fa7bd8-79e4-4764-9e5a-4165be475d66.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/10fa7bd8-79e4-4764-9e5a-4165be475d66.png"/>
7/ Search + E-commerce + Gaming + Social + Short Videos, Tencent has it all. Symposium? Jack has one, and another boss Ma has one too... We also discussed the symposium a day in advance on our public account...
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After Tencent integrates Deepseek, the search volume and advertising revenue of WeChat are expected to increase. Currently, WeChat's daily search volume is 600 million times, and advertising revenue is about 1 billion RMB, far lower than Baidu's 65 billion RMB. The introduction of Deepseek provides an opportunity for Tencent to monetize its search, with WeChat serving as an AI platform that has rich data and application scenarios. This move could change the competitive landscape, posing greater challenges for ByteDance's Doubao. The integration of Apple's large model with WeChat aligns with the logic of traffic business and may impact the incremental growth of cloud computing

- Tencent's daily search volume was 600 million before integrating DeepSeek, generating around 1 billion RMB in ad revenue, compared to Baidu's 1.5 billion searches and 65 billion RMB revenue.  
- The emergence of Doubao and Kimi presents a significant opportunity for Tencent to accelerate search monetization, as competition intensifies with DeepSeek's capabilities.  
- Both Apple and WeChat's integration of large models aligns with their business models as traffic gateways, with potential implications for cloud computing growth and market dynamics.