Last Updated -
October 26, 2026
Explore the business model, global strategy, and market performance including insights into its position in China.
Baidu, Inc. is a Chinese technology company founded in 2000 and headquartered in Beijing. It is listed on Nasdaq and the Hong Kong Stock Exchange, and describes itself as a leading AI company with a strong internet foundation. Its core businesses include Baidu Search, online marketing, AI cloud infrastructure, AI applications, autonomous driving through Apollo Go, and iQIYI, its consolidated online entertainment platform.
Baidu developed from China’s dominant internet search platform into a broader AI and cloud company. Its Baidu General Business segment includes online advertising, cloud services, AI-powered products, autonomous driving, and other technology activities, while iQIYI contributes membership, advertising, and content-related video revenue. The company’s strategic direction is to move from an advertising-led internet model toward an AI-first model built around cloud infrastructure, foundation models, agents, and autonomous mobility.
In Q2 2026, Baidu reported total revenue of RMB31.3 billion, down 4% year over year, with Baidu General Business revenue of RMB25.2 billion and iQIYI revenue of RMB6.3 billion. Online marketing services generated RMB13.1 billion, equal to 52% of Baidu General Business revenue, while AI-led non-marketing activities continued to grow. Baidu Core AI-powered Business revenue rose 25% year over year to RMB12.5 billion, and AI Cloud Infra revenue rose 50% to RMB7.3 billion. Baidu App reached 644 million monthly active users in June 2026, and Apollo Go had provided more than 23 million public rides by June 30, 2026, showing Baidu’s relevance across search, AI infrastructure, consumer internet, and autonomous mobility in China.
Baidu makes money from internet search and feed advertising, AI cloud infrastructure, AI applications, autonomous driving initiatives, and online video entertainment through iQIYI. The company reports two operating segments: Baidu General Business and iQIYI. Baidu General Business is the core segment and includes online marketing, cloud services, AI-powered products and services, Apollo Go, and other technology activities.
In Q2 2026, Baidu generated total revenue of RMB31.3 billion, down 4% year over year. Baidu General Business contributed RMB25.2 billion, down 4%, while iQIYI contributed RMB6.3 billion, down 5%. The revenue mix shows a company in transition. Online marketing remains large, but AI-led revenue is becoming more important.
Baidu’s main competitive advantage is its combination of large consumer traffic, search data, AI infrastructure, foundation models, cloud services, and autonomous driving assets. Baidu App monthly active users reached 644 million in June 2026, giving the company a major distribution base for search, feeds, and AI-native advertising. Its AI stack spans chips, cloud infrastructure, foundation models, applications, and autonomous driving, which gives it a more vertically integrated position than many single-product AI or cloud competitors.
The company’s market position is strongest in China, where its search franchise, advertising base, cloud customers, regulatory exposure, and operating history are concentrated. China remains central to the investment case, even as Apollo Go expands internationally. Baidu’s Hong Kong dual-primary listing and inclusion in Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect also broaden access for mainland Chinese investors.
Baidu competes directly with Alibaba in Chinese cloud and AI infrastructure, Tencent in internet advertising and AI applications, and other Chinese technology companies and specialist AI firms across search, cloud, short-form content, autonomous driving, and enterprise AI. Alphabet’s Google is the closest global comparison for search-led AI strategy, although Google is not a direct China-market competitor in Baidu’s core search business. Compared with Google, Baidu has a smaller global footprint and a heavier China concentration, but it has a similar strategic goal of using search traffic, AI models, cloud infrastructure, and productivity tools to defend advertising while building new AI revenue streams.
China is Baidu’s core market, driving its search traffic, online marketing revenue, AI cloud demand, content regulation exposure, and autonomous-driving commercialization. In Q2 2026, total revenue was RMB31.3 billion, down 4% year over year, with Baidu General Business revenue of RMB25.2 billion. Online marketing revenue fell 19% to RMB13.1 billion, showing pressure in China’s advertising market, while AI-led revenue is becoming the main strategic offset. Baidu Core AI-powered Business revenue rose 25% to RMB12.5 billion, and AI Cloud Infra revenue rose 50% to RMB7.3 billion. Baidu App had 644 million monthly active users in June 2026. Apollo Go had reached 28 cities globally and delivered over 4.1 million fully driverless rides in H1 2026. Local competitors include Alibaba in cloud and AI infrastructure, Tencent in internet advertising and AI applications, and domestic autonomous-driving specialists.
Baidu is at a turning point where AI-related businesses are growing quickly, but the legacy advertising base remains under pressure. In Q2 2026, total revenue fell 4% year over year to RMB31.3 billion. Baidu General Business revenue was RMB25.2 billion, also down 4%, while iQIYI revenue declined 5% to RMB6.3 billion. The contrast inside Baidu General Business is important: online marketing services revenue fell 19% year over year to RMB13.1 billion, while non-marketing revenue rose 21% to RMB12.1 billion. Baidu Core AI-powered Business revenue reached RMB12.5 billion, up 25% and equal to half of Baidu General Business revenue.
Baidu’s outlook depends on whether AI cloud, AI applications, and Apollo Go scale enough to offset weaker advertising and iQIYI revenue. The company has a large cash and investment position of RMB283.1 billion as of June 30, 2026, which gives it capacity to invest through the transition. The investment case is increasingly tied to execution in AI infrastructure and commercialization, rather than recovery in the older search advertising model.
This Company Profile was written by Dominik Diemer
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