Baidu reports Q1 2025 earnings amid AI growth

Baidu’s recent financial report reveals robust growth across its core businesses, particularly in the AI space. The Chinese tech giant has achieved significant expansion in its AI Cloud offerings while making strategic moves in autonomous transportation. These developments highlight Baidu’s continued evolution from a search engine company to a comprehensive AI and technology leader with growing international ambitions.

The big picture: Baidu reported solid financial growth in Q1 2025, with total revenues increasing 3% year over year to RMB 32.5 billion ($4.47 billion), driven primarily by its AI-focused businesses.

• Baidu Core revenue, which encompasses the company’s AI initiatives, grew 7% year over year to RMB 25.5 billion ($3.51 billion).
• Net income attributable to Baidu reached RMB 7.7 billion ($1.06 billion), with diluted earnings per ADS at RMB 21.59 ($2.98).

AI momentum: The company’s AI Cloud business emerged as a standout performer, surging 42% year over year as market recognition grows for Baidu’s full-stack AI offerings.

• CEO Robin Li highlighted the “distinctive strength” of Baidu’s AI products and solutions, noting their “highly competitive price-performance advantage” in the market.
• The company released two new foundation models in March 2025: ERNIE 4.5 and ERNIE X1, continuing the expansion of its AI model portfolio.

Autonomous driving breakthrough: Apollo Go, Baidu’s robotaxi service, achieved international expansion by entering markets in the United Arab Emirates.

• The autonomous ride-hailing service began operations in both Dubai and Abu Dhabi, marking Baidu’s first significant robotaxi deployment outside China.
• Apollo Go provided over 1.4 million autonomous rides in Q1 2025, demonstrating growing adoption of the technology.

User engagement: Baidu’s core applications continue to maintain strong user numbers despite the company’s diversification into AI and autonomous driving.

• The Baidu App reached 724 million monthly active users in the quarter, highlighting the company’s continued relevance in consumer-facing digital services.