A：Baidu Core reported total revenue of RMB 24.7 billion in Q3.

A：AI cloud revenue reached RMB 2 billion, recording a year over year solid growth.

A：The significant growth in subscription-based revenue from AI accelerator infrastructure reflects a healthy shift toward a more recurring and structurally healthier revenue model, driven by strong demand for Baidu's AI products and solutions.

A：Some examples include Famo or FM agent, which improves enterprise efficiency, and the Daniel Wu English Coach, an AI-powered digital employee for language education.

A：AI has revitalized the user experience in Baidu's largest AI applications for individuals, with a combined MAU接近3000万 in August. Baidu, Waco, and Baidu Drive launched a general purpose AI agent platform that orchestrates hundreds of specialized agents to complete complex tasks via natural language interactions, gaining strong traction since launch.

A：Autonomous driving exemplifies the transformative value of AI, unlocking new possibilities for mobility, safety, and efficiency.

A：The fully driverless operational rides grew significantly to 212% year over year in Q3, up from 148% growth last quarter.

A：As of October, Apollo's global footprint expanded to 22 cities, up from 16 last quarter.

A：Apollo expanded its global presence into Switzerland through a strategic partnership, secured one of the first fully driverless commercial operation permits in Abu Dhabi, and deepened its collaboration with local partners in Dubai. It also conducted self-driving trials in Hong Kong.

A：Agents and digital humans are transforming the online marketing business by creating substantial value for advertisers through higher engagement, better lead conversion, and stronger ROI. They help clarify user intent through intelligent, multi-round conversations and provide high-quality sales leads, resulting in more precise and qualified leads for advertisers.

A：Agents and digital humans have gained traction across diverse industries, including health care, business services, lifestyle services, and have seen strong adoption in industries such as health care, automotive, and legal services.

A：Digital humans have seen strong momentum, with the introduction of Ernie powering AI live streaming at low cost for advertisers, making professional live streaming accessible across various scenarios and industries. The technology has evolved to deliver greater realism, natural interaction, and real-time engagement, often surpassing human hosts.

A：The AI Cloud business has seen broadened adoption with leading and mid-tier enterprise clients increasing spending and expanding usage beyond AI infrastructure. The client portfolio has improved with expansion into nearly all major industry players in China, and key verticals experienced strong momentum in adopting AI. The automotive vertical also saw strong growth with revenue nearly doubling year over year.

A：Tian Fan has been strategically upgraded to be agent-centric, providing leading model services, cutting-edge agent development capabilities, and best-in-class agent infrastructure. The platform integrates high-quality proprietary and third-party capabilities and tools to enable seamless agent creation and accelerate AI application development.

A：Apollo Gold has shown significant progress, with a 121% year-over-year increase in fully driverless operational hours as of November 25. The program has provided over 17 million cumulative rides to the public and has expanded geographically to 22 cities as of October. It has achieved 100% fully driverless operations in multiple cities in China.

A：The AI transformation of Baidu Search is ongoing, with around 70% of mobile search result pages containing AI generated content. There has been a focus on enhancing the quality of multimodal content within AI search results and expanding the content ecosystem. User metrics have continued to improve, and AI search capabilities have been extended to external partners through the Baidu AI Search API.

A：Baidu is extending its AI search capabilities to external partners through the Baidu AI Search API, allowing integration of Baidu's leading search technology into other companies' platforms. This has resulted in partnerships with leading companies like Samsung, Xiaomi, and Honor, expanding Baidu's technology beyond its own ecosystem and creating value across the industry.

A：Baidu has introduced a new AI native view to organize its business groups according to the nature of their products and services, which will help investors understand the fundamental valuation drivers across Baidu's diverse portfolio. Going forward, Baidu will provide business updates through this new AI native view and continue to disclose results under the existing reporting methods.

A：Revenue from AI native marketing services reached RMB 2.8 billion in Q3, representing a robust 260% year-over-year increase, and accounting for a large portion of Baidu's online marketing revenue.

A：In the third quarter, total revenues were RMB 30.212 billion, down 7% year over year. Revenue from Baidu Core was RMB 24.7 billion, also down 7%. Online marketing revenue decreased 18% year over year to RMB 15.3 billion, while Baidu Core non-line market revenue, driven by the AI core business, increased 21% year over year to RMB 9.3 billion.

A：Cost of revenues for Baidu was RMB 18.3 billion, up 12% year over year, primarily due to increased costs related to the AI cloud business. Operating expenses, excluding impairment of long-lived assets, were RMB 11.8 billion, up 5% year over year. Baidu Core's operating expenses were RMB 10.4 billion, also up 5% year over year.

A：The impairment of long-lived assets, amounting to RMB 16.2 billion, was due to an impairment loss of the core asset group. This was done to ensure the asset portfolio remains healthy and optimized to support future growth in Baidu's AI-native business, reflecting Baidu's proactive approach in reviewing its asset base in light of rapid progress in high-performance computing capabilities.

A：Baidu's operating loss in the third quarter was RMB 15.1 billion. Excluding the impairment of long-lived assets, operating income was RMB 1.1 billion. Baidu Core's operating loss was RMB 15.0 billion, and Baidu Core's operating income was RMB 1.2 billion.

A：The net loss attributable to Baidu was RMB 11.2 billion, and the diluted loss per ADS was RMB 33.88. The net loss attributable to Baidu Core was RMB 11.1 billion, with a net loss margin for Baidu Core of 45%. Excluding the impact of impairment of long-lived assets, non-GAAP net income attributable to Baidu was RMB 3.8 billion, and non-GAAP diluted earnings per ADS was RMB 11.12. Non-GAAP net income attributable to Baidu Core was RMB 3.8 billion.

A：Baidu aims to improve in several areas where existing models do not perform well, such as digital humans that style better than real humans in live streaming e-commerce, AI generated content that matches users' interests better than content created by influencers (KOLs), and AI-based agents that can determine content quality on specific topics.

A：Baidu's strategy for the cloud business growth is to leverage its strong full-stack AI capabilities and the robust demand for AI-centric cloud services to enable healthy, scalable, and sustainable growth. The company is focusing on applications of AI across operations, which drives broad-based demand for its AI-centric cloud services. Additionally, Baidu is investing in AI infrastructure and applications, such as the Q Fund Mass platform, to support sustainable growth.

A：Baidu plans to integrate AI into its search functions through the Baidu App, where it supports multi-round conversations and function calling. The company's approach includes leveraging AI for contextual and personalized interactions, such as through 'Eva', which has seen significant growth with a 5-fold increase in conversation rounds year over year. Baidu also plans to bring advanced capabilities into search, aiming to make interactions more intelligent, personalized, and task-completion oriented.

A：The highlights of the AI Cloud infrastructure include industry leading AI infrastructure with self-developed AI computing architecture and cloud infrastructure, resulting in long-term sustainable revenue and improving margins as utilization increases. AI applications are showcased through Baidu's flexure products like Baidu Wenku and Baidu Drive, with AI enhancing functionality and positioning the company with one of the largest AI application portfolios in China. These are subscription-based, contributing to higher quality revenue and margins. AI native marketing services, including agents and digital humans, improve efficiency in the advertising business and drive a growth curve through enhanced engagement, with marketing revenue increasing and expected continued penetration as adoption improves.

A：Apollo Go, having started in 2013, is now one of the world's largest robot taxi service providers, with over 17 million cumulative rides as of November. The company is the market leader, with ride volumes over 15 times higher than its nearest competitor. The ability to achieve a leading position in autonomous driving technology is attributed to skill, encountering and training models to handle unseen corner cases. The robot taxi business has reached a tipping point with people experiencing the technology and creating positive social media feedback, likely leading to regulatory changes post-2026. Future plans include scaling up both domestically and internationally, adding more cars in existing cities, expanding to more cities, accumulating more fully driverless mileage, improving technology, and reducing costs per mile. Apollo Go aims to turn positive unit economics in more cities by 2026 and enter any city quickly with regulatory and market conditions allowing.

A：AI search monetization is progressing well, with nearly 70% of mobile search result pages being AI-generated and featuring multi-model first content. This format is unique to the company, and the level is expected to remain stable as they have covered query types that AI significantly improves user experience. Quality improvements, particularly in rich media content like images and videos, have led to better user experiences, higher user retention, and users initiating 6% more queries and spending more time with AI results. Early testing results are encouraging, with increased revenue from commercial modules, agents for advertisers, and digital human live streaming with real-time interaction capabilities. The focus remains on enhancing user experiences over immediate monetization, with AI transformation crucial for long-term competitiveness and creating short-term pressure on revenue and margins.

A：The asset impairment this quarter is attributed to the company's proactive approach to investing in the latest AI components and technologies, leading to a comprehensive review of their infrastructure portfolio. Some assets no longer meet current computing efficiency requirements, prompting the impairment to align with advanced AI computing demand. Future CapEx plans involve maintaining a high level of investment, with an example being an investment of over 100 billion RMB in AI since March 2023. Going forward, the company expects greater operational leverage as the AI business scales, helped by a leaner and more efficient asset base, disciplined investment for capital efficiency, enhanced AI infrastructure utilization, and dynamic capacity allocation. Q3 represents a lower point for margins, with plans to improve non-GAAP operational income and margins as benefits from these strategies start to take effect.

A：Under the plan and program authorized in 2023, the company has already repurchased shares worth $2.3 billion. Future buyback mechanisms are under review to provide greater certainty and reduce volatility, and the company is exploring diversified return mechanisms like a dividend policy. These efforts aim to deliver more consistent value to shareholders. However, specific details on future buyback plans are not provided.