Quick Facts / Company Snapshot
- Company Name: Baidu, Inc.
- Stock Symbol: NASDAQ: BIDU, HKEX: 9888
- Headquarters: Baidu Campus, No. 10 Shangdi 10th Street, Haidian District, Beijing, China
- Fiscal Year End: December 31
- Total Revenues (FY 2024): RMB 133,125 million (US$ 18,238 million)
- Operating Profit (FY 2024): RMB 21,270 million (US$ 2,914 million)
- Net Income (Attributable to Baidu, FY 2024): RMB 23,760 million (US$ 3,255 million)
- Total Assets (FY 2024): RMB 427,780 million (US$ 58,606 million)
- Cash and Cash Equivalents (FY 2024): RMB 24,832 million (US$ 3,402 million)
- Employees: Tens of thousands of engineers and staff across Beijing, Shanghai, Shenzhen, and international offices
- Core Business: AI-native internet search, cloud computing, autonomous driving
- Mission: To make the complicated world simpler through technology
- Key Founder: Robin Yanhong Li
- Major Subsidiary: iQIYI, Inc. (Online entertainment service)
- Primary Market: Mainland China (96%+ of revenues)
- Key AI Model: ERNIE (Enhanced Representation through Knowledge Integration)
- Autonomous Driving Brand: Apollo Go
- Smart Device Brand: Xiaodu
- Cloud Service: Baidu AI Cloud
- Latest Strategic Shift: Transitioning to an “AI-first” and “AI-native” business model
Company Overview
Baidu, Inc. is a leading AI company with a strong internet foundation, headquartered in Beijing, China. Founded in 2000 as a search engine platform, the company has undergone a significant strategic transformation over the past decade to become a comprehensive artificial intelligence powerhouse. Baidu’s mission is to “make the complicated world simpler through technology.”
The company defines itself as an “AI-first” business, leveraging a full-stack AI architecture that encompasses chips (Kunlun), deep learning frameworks (PaddlePaddle), large language models (ERNIE), and AI applications. This technological depth allows Baidu to power a vast ecosystem of users, developers, and enterprises. The company operates through a dual-engine strategy: strengthening its mobile ecosystem—anchored by the Baidu App and search capabilities—and accelerating the commercialization of AI through cloud services and intelligent driving initiatives.
Baidu is structurally organized as a Cayman Islands holding company that conducts its primary operations in Mainland China through a series of subsidiaries and Variable Interest Entities (VIEs). This structure enables the company to comply with local regulations while accessing global capital markets. The company’s operations are heavily concentrated in China, which serves as its primary market for search, cloud, and autonomous driving services. As of early 2026, Baidu has integrated generative AI across its product suite, with approximately 70% of its mobile search result pages now featuring AI-generated content, marking a fundamental shift from traditional search to an AI-native marketing and application ecosystem.
Business Segments
Baidu operates through two distinct primary segments: Baidu Core and iQIYI.
Baidu Core
Revenue (FY 2024): RMB 104,712 million (US$ 14,345 million)
Percentage of Total Revenue: 78.7%
Baidu Core accounts for the vast majority of the company’s revenue and innovation. It is a comprehensive portfolio of products and services that encompasses the company’s search capabilities, AI initiatives, and hardware. Baidu Core is further analyzed through three revenue streams: Online Marketing, Cloud Services, and Others.
- Operational Scope: This segment includes the Baidu App, Baidu Search, Baidu Feed, Haokan, Baidu Knows, Baidu Wiki, and the commercialization of AI technologies. It serves hundreds of millions of users and millions of enterprises.
- Key Components:
- Mobile Ecosystem: A portfolio of apps including the flagship Baidu App, which aggregates search, feed, and content.
- AI Cloud: Provides AI-powered cloud solutions for enterprises and the public sector, differentiated by Baidu’s proprietary AI capabilities.
- Intelligent Driving & New Initiatives (Apollo): Includes Apollo Go (autonomous ride-hailing), intelligent vehicle solutions, and Xiaodu smart devices.
iQIYI
Revenue (FY 2024): RMB 29,225 million (US$ 4,004 million)
Percentage of Total Revenue: 21.9%
iQIYI is a market-leading online entertainment service in China, often compared to Netflix. It operates as a separate subsidiary with its own listing but is consolidated into Baidu’s financial statements.
- Operational Scope: iQIYI produces, aggregates, and distributes a wide variety of professionally produced content (PPC) and user-generated content (UGC).
- Key Components:
- Membership Services: Subscription-based access to premium content.
- Online Advertising: Brand and performance-based advertising on the video platform.
- Content Distribution: Licensing content to other platforms.
(Note: The sum of segment revenues exceeds the consolidated total due to intersegment eliminations of RMB 812 million).
History and Evolution
Baidu’s journey reflects a continuous evolution from a search-centric internet company to a deep-tech AI organization.
- 2000: Baidu was founded in Beijing by Robin Yanhong Li and co-founders as a search engine providing services to other Chinese portals.
- 2005: The company completed its Initial Public Offering (IPO) on the NASDAQ, trading under the ticker symbol BIDU.
- 2010: Baidu began consistently investing in Artificial Intelligence (AI) to advance search functionality and monetization.
- 2012: The company obtained a controlling interest in iQIYI, Inc., integrating online entertainment into its ecosystem.
- 2013: Baidu acquired the online video business of PPStream Inc. and merged it with iQIYI.
- 2017: The company officially unveiled its “All in on AI” strategy, shifting focus towards autonomous driving and conversational AI.
- 2021: Baidu completed a secondary listing on the Hong Kong Stock Exchange (HKEX: 9888).
- 2023: Launch of ERNIE Bot and the ERNIE 3.5 foundation model, signaling the start of the generative AI era for the company.
- 2024: Baidu released ERNIE 4.0 and ERNIE 4.0 Turbo models. The company reported full-year revenues of RMB 133.1 billion.
- 2025: By Q3 2025, Apollo Go provided 3.1 million fully driverless rides in a single quarter. The company faced a challenging macroeconomic environment, leading to a significant asset impairment charge in Q3.
- 2026: On January 1, Baidu announced the proposed spin-off and separate listing of Kunlunxin, its AI chip design unit.
Products and Services
Mobile Ecosystem (Online Marketing)
Revenue (Baidu Core Online Marketing, FY 2024): RMB 72,972 million (US$ 9,997 million)
Percentage of Total Revenue: 54.8%
This remains Baidu’s primary cash cow, driven by the Baidu App.
- Baidu App: The flagship mobile application that offers search, feed, and content services. It serves as the primary gateway for users to access information on the mobile internet.
- Baidu Search: The dominant search engine in China, now heavily integrated with generative AI to provide direct answers and content creation capabilities.
- Managed Page: A hosted marketing solution for small and medium-sized enterprises (SMEs) to build mobile presences within the Baidu ecosystem. This service accounted for 48% of Baidu Core’s online marketing revenue in 2024.
- Baidu Feed: A personalized news feed product that recommends content to users based on their interests and demographics.
AI Cloud
Revenue (Baidu Core Cloud Services, FY 2024): RMB 21,860 million (US$ 2,995 million)
Percentage of Total Revenue: 16.4%
Baidu AI Cloud provides a full suite of cloud services differentiated by AI integration.
- Enterprise & Public Sector Cloud: Offers IaaS (Infrastructure as a Service), PaaS (Platform as a Service), and SaaS (Software as a Service) solutions. It focuses on vertical industries such as transportation, manufacturing, energy, and finance.
- Personal Cloud: Includes Baidu Drive, a cloud storage service for individual users to store photos, videos, and files.
- Model-as-a-Service (MaaS): Provides enterprise access to the ERNIE family of foundation models for application development.
iQIYI Services
Revenue (FY 2024): RMB 29,225 million (US$ 4,004 million)
Percentage of Total Revenue: 21.9%
- Membership Services: The largest revenue driver for iQIYI (RMB 17.8 billion in 2024), offering exclusive content and ad-free viewing.
- Online Advertising Services: Brand and feed advertising displayed within the video platform (RMB 5.7 billion in 2024).
- Content Distribution: Revenue from sub-licensing video content to third parties (RMB 2.8 billion in 2024).
Intelligent Driving & Other Services
Revenue (Baidu Core Others, FY 2024): RMB 9,880 million (US$ 1,353 million)
Percentage of Total Revenue: 7.4%
- Apollo Go: Baidu’s autonomous ride-hailing service. As of November 2025, it had accumulated over 17 million rides across 22 cities. In Q3 2025 alone, it provided 3.1 million fully driverless rides.
- Apollo Auto Solutions: Provides intelligent driving solutions to automakers, including high-definition maps and automated valet parking.
- Xiaodu Smart Devices: A line of smart hardware powered by the DuerOS conversational AI system, including smart speakers and displays.
Brand Portfolio
Baidu (百度)
Revenue Contribution: Primary Driver (approx. 55% of Total Revenue via Online Marketing)
The core brand representing search, information access, and the mobile ecosystem. It is synonymous with internet search in China.
iQIYI (爱奇艺)
Revenue Contribution: 21.9% of Total Revenue
The entertainment brand representing premium long-form video content, drama series, and variety shows.
Apollo (阿波罗)
Revenue Contribution: Included in “Others” (7.4%)
The brand for Baidu’s open autonomous driving platform and intelligent transportation solutions. It is recognized globally as a leader in robotaxi operations.
Xiaodu (小度)
Revenue Contribution: Included in “Others” (7.4%)
The consumer hardware brand for smart speakers, smart displays, and other AI-enabled home devices.
ERNIE (文心)
Revenue Contribution: Integrated into Cloud and Search
Baidu’s Large Language Model (LLM) brand. ERNIE powers the generative AI features across the entire Baidu product suite and is sold to enterprises via the cloud.
Geographical Presence
Baidu’s business is overwhelmingly concentrated in its domestic market.
Mainland China
Revenue Contribution: >96% of Total Revenue
Operational Footprint:
- Headquarters: Beijing (Haidian District).
- Key Offices/R&D Centers: Shanghai, Shenzhen, Guangzhou.
- Data Centers: Distributed across multiple provinces including Yangquan, Dingxing, and Xushui to support cloud and AI computing.
- Apollo Go Operations: Operational in 22 cities including Beijing, Shanghai, Shenzhen, and Wuhan.
International
Revenue Contribution: <4% of Total Revenue
Operational Footprint:
- United States: R&D center in Sunnyvale, California.
- Other Offices: Hong Kong, Japan, Singapore, Malaysia, Thailand, Canada.
- Note: The company has limited its international expansion primarily to mobile apps and operational support, with the vast majority of monetization occurring within the PRC.
Financial Performance Analysis
The following analysis is based on the Fiscal Year ended December 31, 2024 (audited) and includes specific updates from the Q3 2025 financial report where noted.
Profit and Loss Analysis
Consolidated Income Statement (FY 2024)
| Metric | Amount (RMB millions) | Amount (US$ millions) | YoY Change |
| Total Revenues | 133,125 | 18,238 | -1% |
| Cost of Revenues | 66,102 | 9,056 | +2% |
| Gross Profit | 67,023 | 9,182 | -4% |
| SG&A Expenses | 23,620 | 3,236 | +0.4% |
| R&D Expenses | 22,133 | 3,032 | -9% |
| Operating Profit | 21,270 | 2,914 | -3% |
| Total Other Income (Loss), Net | 7,352 | 1,007 | +120% |
| Income Before Tax | 28,622 | 3,921 | +14% |
| Income Tax Expense | 4,447 | 609 | +22% |
| Net Income (Attributable to Baidu) | 23,760 | 3,255 | +17% |
- Revenue Dynamics: Total revenues were essentially flat (-1% YoY) in 2024. This stagnation was driven by a 3% decline in Baidu Core’s online marketing revenue (RMB 72,972 million), reflecting a soft macroeconomic environment. However, this was partially offset by a 17% growth in Non-Online Marketing revenue (Cloud), which reached RMB 31,740 million.
- Profitability: Despite flat revenue, Net Income attributable to Baidu grew significantly by 17% to RMB 23.8 billion. This was aided by a substantial increase in “Total Other Income,” likely driven by fair value gains on investments and interest income.
- Operating Margin: The operating margin for 2024 was approximately 16% (21,270 / 133,125).
- 2025 Update: In Q3 2025, revenue declined 7% YoY to RMB 31.2 billion. The company recorded a massive operating loss of RMB 15.1 billion for the quarter due to a non-cash impairment charge of RMB 16.2 billion on long-lived assets. Excluding this charge, non-GAAP operating income remained positive.
Balance Sheet Analysis
Consolidated Balance Sheet (As of Dec 31, 2024)
| Metric | Amount (RMB millions) | Amount (US$ millions) |
| Total Assets | 427,780 | 58,606 |
| Cash & Cash Equivalents | 24,832 | 3,402 |
| Short-term Investments | 102,608 | 14,057 |
| Fixed Assets, Net | 30,102 | 4,124 |
| Long-term Investments | 41,721 | 5,716 |
| Total Liabilities | 144,168 | 19,751 |
| Notes Payable (Short & Long Term) | 36,022 | 4,935 |
| Convertible Senior Notes | 8,593 | 1,177 |
| Total Equity | 283,612 | 38,855 |
| Baidu Shareholders’ Equity | 263,620 | 36,116 |
- Liquidity: Baidu maintains a very strong liquidity position. Cash, Restricted Cash, and Short-term Investments totaled approximately RMB 139 billion (US$ 19 billion).
- Leverage: Total debt (Loans + Notes + Convertibles) is well covered by liquid assets, indicating a healthy, net-cash balance sheet.
- Asset Composition: A significant portion of assets is held in short-term investments (24% of total assets), providing flexibility for strategic initiatives.
Cash Flow Analysis
Consolidated Cash Flow Statement (FY 2024)
| Metric | Amount (RMB millions) | Amount (US$ millions) |
| Net Cash Provided by Operating Activities | 21,234 | 2,909 |
| Net Cash Used in Investing Activities | (8,555) | (1,172) |
| Net Cash Used in Financing Activities | (13,759) | (1,885) |
| Effect of Exchange Rate Changes | 95 | 13 |
| Net Decrease in Cash | (985) | (135) |
- Operating Cash Flow: Baidu continues to generate robust operating cash flow (RMB 21.2 billion), primarily from its profitable search and marketing business.
- Investing Activities: The outflow of RMB 8.6 billion reflects continued capital expenditure on AI infrastructure and purchases of investments.
- Financing Activities: The outflow of RMB 13.8 billion includes share repurchases and repayment of debt, indicating a return of capital to shareholders.
Board of Directors and Leadership Team
- Robin Yanhong Li: Co-Founder, Chairman, and Chief Executive Officer. Mr. Li has led the company since its inception in 2000 and oversees overall strategy and business operations.
- Junjie He: Interim Chief Financial Officer. He oversees the financial management and capital allocation strategies of the company.
- James Ding: Independent Director.
- Brent Callinicos: Independent Director.
- Yuanqing Yang: Independent Director.
- Jixun Foo: Independent Director.
- Sandy Ran Xu: Independent Director.
- Committees: The board operates through an Audit Committee, a Compensation Committee, and a Corporate Governance and Nominating Committee.
Subsidiaries, Associates, Joint Ventures
Baidu’s corporate structure involves numerous subsidiaries and VIEs to navigate Chinese regulations regarding foreign investment in internet sectors.
Top Consolidated Entities:
- Baidu Online Network Technology (Beijing) Co., Ltd.: Wholly-owned subsidiary in Mainland China. Key operational entity for Baidu Core.
- Beijing Baidu Netcom Science Technology Co., Ltd.: Variable Interest Entity (VIE). Holds key licenses for value-added telecommunication services.
- iQIYI, Inc.: Majority-owned subsidiary (Cayman Islands).
- Beijing iQIYI Science & Technology Co., Ltd.: VIE for iQIYI’s domestic operations.
- Baidu (Hong Kong) Limited: Holding company for PRC subsidiaries.
- Baidu Holdings Limited: BVI incorporated subsidiary.
Ownership & Contribution:
- Baidu, Inc. consolidates 100% of the financial results of its VIEs based on contractual arrangements that provide effective control, despite having no equity ownership in these entities.
- iQIYI is consolidated as a majority-owned subsidiary.
Physical Properties
Baidu owns and leases significant real estate to support its R&D and operational needs.
- Baidu Campus (Beijing): The corporate headquarters located in the Shangdi Information Industry Base, Haidian District. Owned by the company.
- Baidu Science Park (Beijing): Another major owned office complex in Beijing.
- Shenzhen Office: Owned office building supporting the southern China operations.
- Shanghai Office: Owned office building supporting eastern China operations.
- Cloud Computing Centers: Owned data centers in Yangquan (Shanxi Province), Dingxing, and Xushui.
- Leased Offices: Additional space in Beijing, Tokyo (Japan), Sunnyvale (USA), Hong Kong, and Singapore.
Segment-wise Performance (YoY Movements)
Baidu Core
- 2023 Revenue: RMB 103,465 million
- 2024 Revenue: RMB 104,712 million (+1%)
- Analysis: The slight growth was driven entirely by the Cloud business (+17%), which offset a decline in the high-margin Online Marketing business (-3%). The shift indicates a changing revenue mix toward B2B technology services.
iQIYI
- 2023 Revenue: RMB 31,873 million
- 2024 Revenue: RMB 29,225 million (-8%)
- Analysis: Revenue contracted due to intense competition in the long-form video market and fluctuations in subscriber numbers and advertising demand.
Founders
- Robin Yanhong Li: The central figure in Baidu’s history. Before founding Baidu, he worked for Infoseek and developed the RankDex site-scoring algorithm, which was a precursor to modern search engine technology. He holds a Master of Science in Computer Science from the State University of New York at Buffalo. He serves as Chairman and CEO.
Shareholding Pattern
Baidu operates with a dual-class share structure:
- Class A Ordinary Shares: Entitled to 1 vote per share. Traded as ADSs on NASDAQ and ordinary shares on HKEX.
- Class B Ordinary Shares: Entitled to 10 votes per share. Held primarily by Robin Li.
Key Holders:
- Robin Yanhong Li: Holds approximately 59.9% of the aggregate voting power of the company, giving him effective control over all matters requiring shareholder approval.
- Institutional Investors: The majority of Class A shares are held by global institutional investors (Public float).
Investments and Capital Expenditure Plans
- R&D Spending (2024): RMB 22,133 million. This represents approximately 16.6% of total revenue, highlighting the company’s intense focus on technology development, particularly in Generative AI and autonomous driving.
- Capital Expenditures: Focused on procuring servers and network equipment to support the training and inference of Large Language Models (LLMs) and cloud services.
- Strategic Investments:
- Kunlunxin: Baidu has invested significantly in its AI chip design unit, which it proposed to spin off in 2026.
- Deep Learning: Continued investment in the PaddlePaddle framework to support the AI developer community.
Future Strategy
Baidu’s management has articulated a clear “AI-first” strategy for the future:
- Generative AI Integration: Remaking all consumer-facing products (Search, Maps, Wenku) with AI-native capabilities to enhance user experience and retention.
- Cloud Acceleration: Leveraging the “Model-as-a-Service” framework to sell AI compute and model capabilities to enterprises, moving beyond traditional cloud infrastructure.
- Autonomous Driving Scaling: Expanding the operational scale of Apollo Go. The goal is to achieve unit economics profitability in key regions and scale the fleet of fully driverless robotaxis.
- Mobile Ecosystem Resilience: Maintaining the cash-cow status of the mobile search business to fund new AI growth engines.
Key Strengths
- Dominant Market Position: Baidu holds a near-monopoly on search in China, providing a stable stream of cash flow and user data.
- Full-Stack AI Capabilities: Unlike competitors who may focus on one layer, Baidu possesses the entire AI stack: Chips (Kunlun), Framework (PaddlePaddle), Model (ERNIE), and Applications.
- Data Advantage: Decades of search data provide a unique advantage in training Chinese-language LLMs.
- Autonomous Driving Leadership: Apollo Go is the world’s largest autonomous ride-hailing service by ride volume (17 million+ cumulative rides).
Key Challenges and Risks
- Asset Impairment: The substantial impairment charge (RMB 16.2 billion) in Q3 2025 highlights the risk of declining asset values in its core business groups.
- Regulatory Environment: The company operates in a strictly regulated environment in China, facing scrutiny over content, data security, and algorithms.
- Geopolitical Tension: Export controls on advanced AI chips by the U.S. could hamper Baidu’s ability to train advanced models, though it is mitigating this with its own Kunlun chips.
- Macroeconomic Softness: The decline in online marketing revenue in 2024 and 2025 reflects sensitivity to the broader Chinese economy and advertiser sentiment.
- VIE Structure: Investors hold shares in a Cayman entity, not the operating Chinese companies, posing legal risks regarding enforceability of control.
Conclusion and Strategic Outlook
Baidu, Inc. stands at a critical juncture in 2026. While its legacy search business faces headwinds from a maturing internet market and macroeconomic challenges, its decade-long bet on Artificial Intelligence is beginning to yield tangible commercial results. The company has successfully transitioned from an “internet-centric” to an “AI-first” entity.
The financial performance in 2024 and early 2025 demonstrates this duality: legacy marketing revenues are softening, while AI Cloud and autonomous driving revenues are accelerating. The 17% growth in Net Income for FY 2024, despite flat revenues, underscores the company’s operational discipline and ability to monetize its financial assets.
Looking ahead, Baidu’s strategic outlook depends on three factors: the successful mass commercialization of the ERNIE foundation model, the continued scaling and profitability of Apollo Go robotaxis, and the ability to navigate the complex regulatory and geopolitical landscape. With a pristine balance sheet holding US$ 19 billion in liquidity, Baidu is well-capitalized to sustain its heavy R&D investments and weather near-term volatility.
Official Site: https://ir.baidu.com
FAQ Section:
- What was Baidu’s total revenue for the fiscal year 2024?Baidu reported total revenues of RMB 133,125 million (US$ 18,238 million) for the fiscal year ended December 31, 2024.
- What are Baidu’s main business segments?Baidu operates through two primary segments: Baidu Core (Search, AI Cloud, Autonomous Driving) and iQIYI (Online Entertainment).
- How much revenue does Baidu Core generate?In 2024, Baidu Core generated RMB 104,712 million, representing approximately 78.7% of the company’s total revenue.
- What is Apollo Go?Apollo Go is Baidu’s autonomous ride-hailing service. As of November 2025, it has provided over 17 million rides to the public across 22 cities.
- Does Baidu own iQIYI?Baidu holds a controlling interest in iQIYI and consolidates its financial results. In 2024, iQIYI contributed RMB 29,225 million to Baidu’s total revenue.
- Who is the CEO of Baidu?Robin Yanhong Li is the Co-Founder, Chairman, and Chief Executive Officer of Baidu.
- What is Baidu’s “AI-first” strategy?It is a strategic shift to integrate Generative AI (ERNIE models) across all products and commercialize AI through cloud computing and autonomous driving.
Source: Content on FirmsWorld.com is based on publicly available corporate filings, regulatory disclosures, annual reports, SEC 10-K filings, investor relations materials, and, where applicable, direct communications with the company.
