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Baidu Reveals RMB10 Billion AI Sales as Ad Slump Triggers Biggest Quarterly Revenue Drop

Heavy AI investment alongside a weak ad market produced a quarterly loss.

Overview

  • Third‑quarter revenue fell about 7% to roughly 31.17–31.2 billion yuan, and the company reported a net loss of about 11–11.23 billion yuan largely from asset write‑downs.
  • AI‑related revenue reached 10 billion yuan, up roughly 50% year over year in the first detailed disclosure of Baidu’s AI business mix.
  • Online marketing fell 18% to about 15.3 billion yuan, while non‑marketing revenue rose 21% to 9.3 billion yuan on AI momentum.
  • AI cloud infrastructure grew 33% to 4.2 billion yuan, subscription AI accelerator revenue jumped 128%, and AI marketing revenue climbed 262% to 2.8 billion yuan.
  • Free cash flow turned negative by about $302 million on intensified AI spending, Apollo Go completed 3.1 million driverless rides in the quarter, and analysts issued mixed price‑target changes.