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Baidu’s AI Business Becomes Majority of Core Revenue as Q1 Beat Lifts Shares

The new revenue mix tests whether AI spending will outweigh a slump in ads.

Overview

  • Baidu, which reported first‑quarter results Monday, saw its U.S.-listed shares rise about 3% in premarket trading after revenue and adjusted EPS topped forecasts.
  • Revenue from the core AI-powered segment rose 49% to 13.6 billion yuan and exceeded half of Baidu General Business for the first time, a milestone CEO Robin Li said confirms AI as the company’s growth engine.
  • AI Cloud infrastructure climbed 79% to 8.8 billion yuan and GPU cloud services jumped 184%, while revenue from AI applications was roughly flat at 2.5 billion yuan.
  • Net profit fell 55% to 3.45 billion yuan and total revenue slipped 1.1% to 32.08 billion yuan, yet both metrics came in above analyst estimates.
  • Online advertising dropped to 12.6 billion yuan from 16 billion yuan a year earlier, and Apollo Go logged 3.2 million fully driverless rides in the quarter with 22 million trips reached by April, pointing to where Baidu sees future monetization.