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Baidu Reports Record Quarterly Revenue Drop, Reveals ¥10 Billion in AI Sales

Heavy write-downs produced a ¥11.2 billion net loss, with advertising down 18%.

Overview

  • Total revenue fell 7% year over year to ¥31.17 billion for the third quarter, while online marketing revenue declined to ¥15.3 billion.
  • AI-related businesses generated about ¥10 billion, rising more than 50% year over year, including AI cloud infrastructure up 33% to ¥4.2 billion and AI marketing up 262% to ¥2.8 billion.
  • The quarter included sizable impairment charges that pushed the company into a loss, though Baidu cited adjusted profit of ¥2.6 billion.
  • Baidu advanced its AI push with new chips, an upgraded Ernie model, and Apollo Go logging 3.1 million driverless operational rides.
  • Shares edged lower around the release, and major brokerages updated price targets, with most ratings held at Buy or Equal-Weight.