Baidu’s AI Growth Slows as Video Streaming Revenue Declines

Hadisur Rahman, JadeTimes Staff

H. Rahman is a Jadetimes news reporter covering the USA

---

Image Source: Jeff Pao, Asia Times

Baidu reported mixed financial performance in its latest quarterly results, highlighting continued growth in its artificial intelligence businesses alongside mounting pressure on its online entertainment segment. Revenue from Baidu’s AI-related operations, including the autonomous driving unit Apollo Go and smart home devices such as Xiaodu, rose 21% year on year to 9.3 billion yuan, underscoring the company’s ongoing push to diversify beyond its traditional search business.

Despite the solid increase, the pace of AI revenue growth slowed sharply compared with the previous quarter. In the second quarter, Baidu’s AI segment recorded a 34% year-on-year increase, reflecting stronger demand and rapid expansion across multiple product lines. The more modest third-quarter growth was largely attributed to a low comparison base from the same period last year, suggesting that momentum in the AI business may be stabilising rather than accelerating.

Baidu has invested heavily in artificial intelligence in recent years, positioning AI as a central pillar of its long-term strategy. Apollo Go, its robotaxi service, continues to expand operations in several Chinese cities, while Xiaodu smart devices remain a key consumer-facing application of the company’s AI capabilities. These initiatives are seen as critical to Baidu’s efforts to build sustainable growth engines in a highly competitive technology landscape.

In contrast, iQiyi, Baidu’s online video streaming subsidiary, reported an 8% year-on-year decline in revenue to 6.7 billion yuan. The drop reflects ongoing challenges in China’s streaming market, including intense competition, rising content costs, and cautious consumer spending. The performance of iQiyi has been a recurring concern for investors, as the platform works to balance subscriber growth with profitability.

Overall, the results highlight a shift in Baidu’s revenue mix, with AI-driven businesses playing an increasingly important role while legacy and entertainment segments face headwinds. Analysts note that while AI remains a bright spot, sustaining high growth rates will depend on broader adoption, continued innovation, and the company’s ability to convert technological advances into stable, long-term revenue streams.