Baidu, Inc.
Baidu, Inc. provides internet content, value-added telecommunication-based, internet map, and online audio and video services in the People's Republic of China. It operates in two segments, Baidu General Business and iQIYI. The Baidu General Business segment offers products and services for mobile ecosystem, AI cloud, and intelligent driving. This segment operates Baidu App that enables users to access search, feed, content, and other services through mobile devices; and Haokan, which offers a range of various user generated and professionally produced short videos. It also provides a portfolio of knowledge and information products, including Baidu Wiki, which features columns and videos, such as encyclopedia of intangible cultural heritage, digital museum and recorder of history; Baidu Knows, an online community where users can pose questions to other users, such as individuals, professionals, and enterprises; Baidu Experience, an online platform where users share daily knowledge and experience; ERNIE Bot, new AI-native product that serves as a multi-round conversational AI assistant on both PC and mobile; and Baidu Post, a social media that allows users to post text, image, audio and video content, and reply to original curation forming valuable discussion groups, as well as livestreaming services, including live streaming and AI-powered digital human livestreaming. In addition, the company offers DuerOS smart assistant for the Chinese language; Apollo Go autonomous ride-hailing service; online marketing services; Baidu Maps, a voice-enabled mobile app providing users with travel-related services; and AI chips. The iQIYI segment produces and distributes professionally produced content. This segment offers online entertainment video services, including online videos, experience services, online games, comics, and others. The company was incorporated in 2000 and is headquartered in Beijing, the People's Republic of China.
What does it do?
Baidu is essentially the Google of China. If you live in China and want to search for something online, there's a good chance you're using Baidu. Beyond search, Baidu has built a major streaming platform called iQIYI — think of it as China's Netflix — and has been pouring money into self-driving car technology and AI tools for businesses. With over a billion potential users in China, Baidu sits at the center of how hundreds of millions of people access information every day.
Baidu matters right now because AI is reshaping the internet, and Baidu is China's most direct bet on that shift — it launched its own ChatGPT-style tool called ERNIE Bot and is racing to embed AI across all its products. China's government is also pushing hard for homegrown AI leaders, which puts Baidu in an unusual position: it faces heavy regulation but also has political backing. For investors watching the global AI race, Baidu is one of the few ways to get exposure to AI development happening outside of the US.
How does it make money?
Baidu makes most of its money by selling ads that appear in search results and across its apps — when a business in China wants to be found online, they pay Baidu to show up first, similar to how Google makes money in the West. Its AI Cloud business, which sells computing power and AI tools to other companies, is the second major revenue stream and is growing faster than search. The iQIYI streaming segment brings in subscription and advertising revenue but has historically lost money. Total annual revenue came in at around $129 billion Chinese yuan (roughly $18 billion USD), down slightly from $133 billion yuan the prior year.
Why do investors care?
The core argument for owning Baidu is that the market is undervaluing its AI potential — investors who think ERNIE Bot and AI Cloud can meaningfully grow revenue believe the stock is cheap relative to what the company could earn in a few years. Self-driving technology through its Apollo Go robotaxi service is a longer-term wildcard; if it scales commercially across Chinese cities, it could become a significant business in its own right. For any of this to work, Baidu needs to successfully convert AI investment into real revenue growth, stop the decline in its core advertising business, and navigate an unpredictable regulatory environment.
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