Baidu, Inc. · Q2 2026 call

In Q2, Baidu General Business generated total revenue of RMB 25.2 billion, with Baidu Core AI-powered Business continuing to represent half of the total, reinforcing AI's position at the core of our business.

Within AI Cloud Infra, GPU Cloud revenue nearly quadrupled year-over-year, growing 283% and accelerating significantly from an already strong 184% growth rate last quarter.

Over more than a decade, Kunlunxin has successfully developed and commercialized three generations of AI chips. Building on this track record, it continued to advance a clearly defined product road map, including the latest M100 optimized for large-scale inference and the upcoming M300s.

In Q2, revenue from external customers' token usage on Qianfan grew more than ninefold year-over-year, primarily driven by rapid growth in daily average token consumption among these customers.

Overall, Apollo Go delivered around 1 million fully driverless operational rides in Q2. As of June 2026, cumulative rides provided to the public by Apollo Go exceeded 23 million. Ride volume during the quarter was temporarily affected by operational adjustments in certain domestic cities due to regulatory considerations.

As of the end of June, our fully driverless vehicles recorded an average of approximately one airbag deployment, every 14.4 million kilometers, underscoring our industry-leading safety performance.

Total other income net was RMB 184 million compared to RMB 626 million last quarter and RMB 4.9 billion for the same period last year. The year-over-year decrease was primarily due to a decrease in fair value gain from long-term investments and an increase in net foreign exchange loss arising from exchange rate fluctuation between Renminbi and U.S. dollar.

Baidu General Business had approximately 27,000 employees as of June 30, 2026.

We were among the first companies in China to invest in foundation models. There were trials and errors along the way, but our commitment to make ERNIE competitive remains unwavering. […] We are confident in accelerating AI's iteration and bring ERNIE back into the top tier of foundation models.

The standout of this quarter was the GPU Cloud, whose revenue grew 283% year-over-year, marking its fourth straight quarter of triple-digit growth and accelerating further from 184% in Q1.

So based on current demand trends, our customer pipelines and these differentiated advantages, so we feel confident that AI Cloud Infra can maintain strong growth in the second half with the potential for further acceleration.

We are now in a critical phase of investment, and we intend to keep investing decisively in the areas that matters most to our long-term competitive position while maintaining the same discipline around ROIC, operating efficiency and cash flow.

Our Board has approved the conversion to a dual primary listing back in July. We also filed our application with the Hong Kong Stock Exchange and received its acknowledgment. The next step is our extraordinary general meeting scheduled on August 26. […] And from there, we expect the conversion to take effect within this year, subject to approval of the Hong Kong Stock Exchange and other applicable conditions.

Meanwhile, we have continued to push forward with the AI search transformations while deliberately holding back on monetizing the AI search, both of which we have weighted on our advertising businesses in the near term. Given these dynamics are likely to persist, we expect our advertising business to remain under pressure in the second half.

In the past, Apollo Go achieved unit economics breakeven in a market with relatively low taxi fares. In the future, in overseas markets with higher ride prices, our low-cost vehicles and proven operating model have the potential to deliver even stronger unit economics. The international market outside of U.S. and China is also larger than the domestic China market.