CFO on Baidu's AI strategy, chip IPO, and robotaxi expansion (with Haslinda Amin)

Asks about Baidu's competitive edge, noting AI is 50% of core revenue.

Haslinda Amin

Hengjie Hu

Baidu's unique driver is its integrated full-stack capabilities: chip, cloud, foundation model, and applications. This quarter, AI-related revenue exceeded 50% for the first time in history.

The fundamental support for AI is infrastructure (chip + cloud). Baidu has the largest AI application portfolio (>10B ARR) and is renovating it with AI tools.

Asks why Baidu's share price is trailing rivals like Minimax.

Haslinda Amin

Hengjie Hu

Baidu's share price almost doubled in the last 3-4 quarters, signaling the market sees potential to unlock value across different layers. The Kunlun chip is best-in-class for inference in China.

Baidu delivered 3 consecutive quarters of positive operating cash flow and doubled operating profit this quarter.

Asks why IPO the Kunlun chip unit—is it the only way to unlock value?

Haslinda Amin

Hengjie Hu

The chip IPO is more strategic than financial. The chip market is huge and needs a neutral, open platform. Being a separate public company improves governance and gives more resources for independent customer conversations.

Baidu's client portfolio goes across verticals (EV, cloud, traditional sectors). Independence helps build the ecosystem.

Asks about capex and stretched margins, and whether strategy needs rethinking.

Haslinda Amin

Hengjie Hu

Baidu doubled its operating margin this quarter while peers saw declines. Cloud revenue grew 79% YoY, double the market. Internal operation efficiency is better than the market—fast growth with less cash spent.

Baidu implemented strict ROI measures for any dollar spent on infrastructure. The payback period is already signaled in this quarter's numbers.

Asks when shareholders will see ROI from AI investments.

Haslinda Amin

Hengjie Hu

ROI is already signaled in this quarter's numbers. Going forward, expect a revamp and expansion of profits and cash. Baidu's own inference costs are much cheaper, shortening the payback period.

Asks about robotaxi expansion plans and viability in new markets.

Haslinda Amin

Hengjie Hu

Baidu is likely the global #2 by weekly rides. They are shipping cars to London and exploring Middle East markets. Strategy is to find markets with both technology demand and passenger demand, partnering with local networks.

Trip growth is over 100% YoY. Robotaxi is a medium-term monetization play, but Baidu continues to invest in technology and data flywheel.

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