Baidu: AI investments may match search revenue

Baidu intends to generate profits and cash flows from its investments in artificial intelligence, which now account for more than half of its sales. The company expects to recover its costs within two to three years, driven by growing demand for computing services and electronic chips. It is also focused on reducing capital expenditures and strengthening its efforts in developing AI agents and applications. Additionally, Baidu plans to list on the Hong Kong Stock Exchange and prepare for an independent IPO of its chip company, Kunlun Xin. The company is also implementing share buyback programs and dividend distributions.