Baidu’s GPU Cloud revenue increased 283% year over year in Q2 2026, accelerating from 184% growth in the previous quarter, as public cloud demand for AI computing helped make the company’s AI-powered business responsible for half of Baidu General Business revenue.
The broader AI Cloud Infrastructure business generated RMB7.3 billion of revenue, up 50% year over year. Baidu attributed the GPU Cloud acceleration to mounting demand for public cloud-based AI computing.
Baidu Core AI-powered Business reached RMB12.5 billion of revenue, up 25% from RMB10 billion a year earlier. That business represented 50% of Baidu General Business revenue, compared with 38% in Q2 2025.
At the same time, Baidu’s Legacy Business declined 23% to RMB10.4 billion from RMB13.6 billion. The opposite trajectories of AI and legacy revenue provide a clear numerical view of Baidu’s transition from an internet-centered business toward an AI-centered revenue base.
AI Applications generated RMB2.5 billion of Q2 revenue, up 3%, while AI-native Marketing Services generated RMB2.6 billion and was approximately flat. Baidu also launched an enterprise edition of DuMate, its general-purpose productivity agent, during June.
Traditional online marketing remains under pressure. Online Marketing Services revenue declined 19% to RMB13.1 billion from RMB16.2 billion and represented 52% of Baidu General Business revenue. Other General Business revenue increased 21% to RMB12.1 billion.
Overall Baidu revenue declined 4% to RMB31.3 billion, or approximately $4.62 billion. Baidu General Business revenue was RMB25.2 billion, down 4%, while iQIYI generated RMB6.3 billion, down 5%.
Even with the overall revenue decline, Baidu generated RMB3.4 billion of operating cash flow, marking the fourth consecutive quarter of positive operating cash flow. Total cash and investments stood at RMB283.1 billion, or approximately $41.72 billion, at June 30.
Net income attributable to Baidu was RMB2.3 billion, or $342 million, while adjusted EBITDA reached RMB6.2 billion, or approximately $906 million, representing a 20% adjusted EBITDA margin.
Baidu’s autonomous-driving business is expanding internationally alongside its AI infrastructure operations. Apollo Go’s footprint reached 28 cities, with more than 350 million autonomous kilometers accumulated, including more than 240 million fully driverless kilometers. The company reported activity in London, Dubai, Hong Kong and Switzerland and an agreement to explore service in Kazakhstan.
Baidu has also returned $259 million to shareholders since the beginning of Q1 2026 through its current share-repurchase program. Separately, the company is moving toward converting its Hong Kong presence to a dual-primary listing, subject to shareholder and exchange approval.
The quarter highlights a significant transition in Baidu’s earnings composition. AI-powered revenue is growing while the legacy business and online advertising decline, and GPU Cloud is expanding several times faster than the broader company as demand for AI computing becomes increasingly important to Baidu’s growth strategy.
KEY QUOTES:
“With AI-powered Business now firmly established as the core of Baidu, we are strengthening the foundations for our next phase of AI-driven growth. AI Cloud Infra sustained strong momentum this quarter, with GPU Cloud growth accelerating further off an already high base. Our AI Applications portfolio also continued to flourish, with stronger capabilities and increasingly diverse use cases. Apollo Go made steady progress with its global expansion, while further strengthening its safety and operational capabilities and enhancing the rider experience. While our online marketing business remains under pressure, the growing momentum in our core AI-powered Business reaffirms Baidu’s transition from an internet-centric company to an AI-first company, and strengthens our confidence in our long-term growth potential.”
Robin Li, Co-Founder and CEO of Baidu
“The quarter was marked by several highlights. First, revenue from Baidu Core AI-powered Business reached RMB 12.5 billion and continued to account for half of Baidu General Business revenue. Second, operating cash flow for Baidu remained positive for the fourth consecutive quarter, reaching RMB 3.4 billion in the second quarter. Third, we are moving forward with our conversion to a dual-primary listing in Hong Kong and expect it to become effective within this year. Going forward, we remain firmly committed to investing in AI as the core driver of Baidu’s long-term growth.”
Haijian He, CFO of Baidu
