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Baidu’s net profit took a significant hit in the fourth quarter of last year, dropping 65 percent compared to the same period in the previous year, as its traditional business segments shrank amid the company’s ongoing focus on artificial intelligence (AI) transformation. Despite this, revenue from AI-related initiatives reached an all-time high proportion of total income, becoming a primary revenue driver.
The Beijing-based tech company reported a net profit of approximately $255 million for the quarter ending December 31. Revenue declined slightly by 4 percent year-over-year to about $4.7 billion but increased by 5 percent from the previous quarter, driven by growth in its new AI-centered business areas.
Revenue from AI-driven services jumped 18 percent quarter-over-quarter, reaching roughly $1.6 billion, and now accounts for 43 percent of the company’s overall revenue—up 4 percentage points from the prior quarter. Income from AI cloud infrastructure was approximately $870 million, while AI application services and AI-native marketing each generated roughly $400 million.
“Our focus on AI has reached a key milestone in 2025, which is now the core of our strategy,” said the CEO. “Our AI Cloud Infrastructure is gaining significant momentum, with our comprehensive full-stack AI capabilities earning increasing recognition from businesses. Our suite of AI applications continues to expand, addressing the evolving needs of both enterprises and consumers.”
“Apollo Go remains a global leader, operating at industry-leading scales and accelerating its international expansion into new markets. Meanwhile, our AI-native marketing services continue to grow, opening up new long-term opportunities,” he added.
Baidu’s autonomous ride-hailing service, Apollo Go, completed 3.4 million fully driverless rides in the last quarter, with weekly rides exceeding 300,000 at peak times. As of this month, the service has provided over 20 million rides to the public.
In December, Baidu disclosed plans to spin off its AI chip division, Kunlunxin Technology, and list it independently. The division quietly submitted an IPO application to the Hong Kong Stock Exchange on January 1.
“The spin-off and separate listing of Kunlunxin are advancing, which we believe will unlock considerable value for shareholders,” said the CFO.
The company’s annual net profit plunged 76 percent from the previous year to around $799 million, with revenue decreasing 3 percent to approximately $18.5 billion, according to its financial report.
Baidu’s shares listed in Hong Kong closed up 0.2 percent today at HKD 123.70 ($15.80), after falling 4.3 percent in the previous session. Its shares traded on NASDAQ declined by 5.7 percent to close at $125.15 yesterday.
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