Baidu Says AI Unit Becomes Majority of Core Revenue in Q1 2026

Baidu, the Chinese technology company, reported a significant shift in its business during the first quarter of 2026, with its artificial intelligence operations now generating the majority of its core revenue. This milestone comes amid a broader financial picture of declining overall profit and a continued slump in its traditional online advertising business.

The company reported total revenue of 32.08 billion yuan, a slight year-over-year decrease of approximately 1 percent. Net income attributable to Baidu fell 55 percent to 3.45 billion yuan, which executives attributed to higher operational costs and foreign exchange losses. Despite the profit decline, both revenue and profit figures exceeded analyst expectations.

The standout performance was in Baidu's core AI-powered business, which includes cloud infrastructure, AI applications, and its Apollo Go autonomous ride-hailing service. Revenue for this segment surged 49 percent year-over-year to 13.6 billion yuan. For the first time, this AI-driven revenue accounted for 52 percent of the company's general business revenue, surpassing its legacy operations.

Chief Executive Robin Li described this as an important milestone,...