Baidu's Flat Quarterly Revenue: Impact of Slowing Economy on Advertising and AI
Flat Revenue in a Slowing Economy
Internet search giant Baidu announced flat second-quarter revenue, reporting a slight decline of 0.4% to 33.9 billion yuan amid a slowing economy. Analysts expected a 34 billion yuan outcome, reflecting reduced advertising spending from economic headwinds.
AI Business Growth
On a positive note, Baidu's non-marketing operations grew 10% year-on-year to 7.5 billion yuan, primarily fueled by its AI Cloud business. Robin Li Yanhong, Baidu's CEO, emphasized that the ongoing acceleration of AI Cloud helps mitigate pressure on the online marketing revenue.
A Pivotal Moment for AI
Rong Luo, Baidu's CFO, indicated a strong outlook for its AI Cloud offerings, prominently featuring the Ernie large language model (LLM). These models serve as the foundational technology for generative AI services like ChatGPT and the Ernie Bot.
Expansion of Baidu's Robotaxi Service
Moreover, Baidu's robotaxi initiative, Apollo Go, recently expanded its fully autonomous operations in Wuhan, the capital of Hubei province. In the June quarter, Apollo Go attracted 899,000 rides, reflecting a 26% year-on-year increase and surpassing a cumulative total of 7 million rides by July 28.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.