Baidu revenue falls 4% as Robin Li pledges AI investment
Business
Baidu just had a rough quarter: revenue dropped 4% and missed expectations, mostly because fewer companies are spending on ads.
CEO Robin Li isn't giving up, though. He's determined to bring Baidu's Ernie AI model back to the top, saying the company will keep investing in talent and tech to get there.
Baidu ad business down 19%
Baidu's ad business took a big hit, down 19% as China's economy slowed. But its AI-powered services like cloud computing actually grew by 25%.
The catch? Spending more on AI meant profits fell hard: net income dropped from 7.3 billion yuan last year to just 2.3 billion this quarter, and its U.S.-listed shares slid 7% after the news.