Business · Companies · 1 day ago
Baidu shifts toward AI as search advertising revenue falls
Baidu used to rely heavily on search ads for income.
As that income falls, it is investing in AI services, self-driving taxis and its own chips.
These businesses are growing, but they have not yet made up for the losses in search.
Whether they can become profitable matters for Baidu’s future.
Baidu is restructuring its business around AI as search advertising revenue falls.
The company is expanding AI cloud services, AI applications, robotaxis and its own AI chips.
Baidu's revenue fell 4% year on year to 31.3 billion yuan in the second quarter.
Revenue has declined year on year for four consecutive quarters, and AI has not yet fully replaced revenue lost from search.
Whether Baidu can turn its AI technology into profit remains a key challenge.
- Who
- Baidu, the Chinese technology company.
- What
- It is shifting toward AI businesses as search advertising revenue falls.
- When
- The second quarter; the article was published on October 10, 2026.
- Where
- China.
- Why
- Search advertising revenue has dropped, prompting Baidu to seek new growth areas.
This story does not have two clearly opposing sides.
No direct quotes in the coverage so far.
Baidu's total revenue declined year on year for four consecutive quarters.
Revenue was 32.1 billion yuan, down about 1% year on year.
Revenue was 31.3 billion yuan, down 4% year on year.
- Second-quarter revenue
- 31.3 billion yuan
- Year-on-year revenue change
- Down 4% in the second quarter
- First-quarter revenue
- 32.1 billion yuan, down about 1% year on year
- First-half revenue
- About 63.4 billion yuan
- New growth areas
- AI cloud, AI applications, robotaxis and in-house AI chips
Sources
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