Baidu CFO says AI profits may match search, shifting to a deep-tech company

Baidu's CFO He Haijian says the company's big spending on AI will soon bring profits and cash returns similar to its search business, proving that its shift from an internet company to an AI company is on the right track. Currently, Baidu's AI-related revenue covers cloud computing and apps, making up more than half of its total income.

He expects that as demand for cloud services and AI chips grows, AI business profit margins will soon match search levels. The investment in new GPU clusters will pay off in two to three years. He stresses that Baidu is using a smarter approach to achieve higher growth with less spending.

He also says Baidu is the only Chinese tech company with a complete AI stack, covering chips, cloud infrastructure, autonomous driving, AI agents, and its own foundation models. He urges investors to see Baidu as a deep-tech firm, not a traditional value stock. Baidu has completed a dual primary listing on the Hong Kong Stock Exchange and Nasdaq, with shares freely convertible.