A：In the first quarter, the core AI power business accounted for 52% of Baidu's general business revenue.

A：Apollo delivered 3.2 billion fully driverless rides in the first quarter.

A：Baidu's full stack advantage includes proprietary components at every layer from infrastructure to applications, which allows for stable and reliable compute supply while optimizing performance, reducing costs, and delivering compelling cost-effectiveness for customers. This advantage is becoming increasingly pronounced as AI applications proliferate, enabling Baidu to capture a broader and more diverse range of opportunities at the infrastructure layer.

A：Baidu's self-developed AI chips offer stability, efficiency, compatibility, and versatility. They have achieved large-scale commercial deployment in a single AI computing cluster with industry-leading cluster performance and stability, supported by a comprehensive software stack.

A：The Baidu AI Cloud solution is gaining client momentum by becoming a trusted infrastructure partner for major companies across various industries, including internet gaming, autonomous driving, smartphones, and financial services. This is supported by the addition of new prominent clients and the continued deepening of collaboration with existing top-tier clients.

A：The Mo platform has seen strong uptake, with daily average token consumption from external customers nearly doubling compared to a year ago, and rapid scaling of Mo revenue. The model library on the Tianfang Mo platform supports an expanding set of models and is kept up to date with popular ones from leading AI frameworks. The platform has significant untapped potential as the foundation for agents and AI applications evolves.

A：Er-5.1 model has achieved stronger tax capabilities, a more compact model size, and enhanced reasoning compared to its predecessor. It topped the LM Arena search leaderboard among Chinese models and ranked fourth globally, making it the only Chinese model on the leaderboard.

A：Baidu has been advancing its AI applications through an application-driven approach, continuously iterating based on real-world needs to keep its AI capabilities at the forefront. This quarter, Baidu continued to see encouraging progress across several high-potential directions.

A：The AI agent called Du M is designed to execute complex multi-step workflows across applications and files, autonomously handling long running tasks from start to finish, available across both PC and mobile platforms.

A：The overseas digital human platform launched at Baidu Create enables merchants and creators to generate digital human content from e-commerce live streams to digital human videos, supporting deep localization in 24 languages with culturally adapted scripts and presentation styles for global markets.

A：The significance of the number of daily active users and the year-over-year growth for the AI search and Duer Assistant reflects an improvement in user satisfaction and the overall search experience, with a nearly doubling of daily active users and more than tripling of daily average conversation runs from the previous year.

A：AI is reshaping the physical world profoundly, with robotaxi, such as Apollo Gold, embodying this transformation by maintaining strong momentum with fully driverless rides growing and an industry-leading safety record.

A：Recent developments in the robotaxi business include maintaining a strong safety record, advancing international expansion in Europe, preparing for open road testing in Switzerland, and beginning testing with Uber in the Middle East, as well as the launch of the Apollo Go app, making it the first and only autonomous ride-hailing service with its own standalone app.

A：AI is transforming the transportation ecosystem by enabling seamless operations in complex real-world scenarios, enhancing productivity, and extending beyond technology demonstration to integrating robot taxis more naturally into public transportation, city operations, and everyday life.

A：AI has become the core driver and the majority of Baidu's business, with continued scaling across a diversified portfolio and into global markets. The role of AI is expected to grow further as Baidu captures opportunities in various sectors such as autonomous ride-hailing.

A：Financial highlights for Baidu in the first quarter include total revenue growth of 2% year over year, a non-GAAP operating income increase of 305% to RMB 4.0 billion, and positive operating cash flow of RMB 2.7 billion for the third consecutive quarter.

A：Baidu's core AI powered business accounted for more than half of Baidu general business revenue for the first time, with revenue exceeding RMB 13 billion, up 405% year over year.

A：Baidu's general business revenue increased 2% year over year in the first quarter.

A：Baidu's cost of revenues increased 7% quarter over quarter.

A：Baidu's operating expenses decreased 28% quarter over quarter due to decreases in expected credit losses and personnel related expenses.

A：Baidu's income tax expense was RMB 528 million in the first quarter of 2026.

A：The net income attributable to Baidu was RMB 3.4 billion, and the non-GAAP net income attributable to Baidu was RMB 4.3 billion in the first quarter.

A：Baidu had approximately 28,000 employees as of March 31, 2026.

A：The momentum in AI Cloud revenue for Baidu is primarily driven by strong enterprise demand for AI infrastructure, both for training and inferences, with a particular strong momentum in the instruments. The company has seen customers not only train models but also run them across more parts of their business at an accelerating pace. This is closely related to the strong traction of Baidu's mass platform, which is one of the very few mass platforms in China. The company has quickly expanded its model library to include the most in-demand models and is seeing continued growth in token consumption from external customers. Additionally, the demand is broad-based across verticals, including autonomous driving, gaming, and advanced manufacturing. The company is also winning new customers, including industries that traditionally did not have users of AI and cloud computing like retail and IP-based consumer brands. The addressable market is still expanding, and with strong demand and tight supply, the company is actively expanding capacity and improving resource efficiency to support growing customer needs.

A：Baidu is managing its compute capacity for future growth by supporting new models quickly with high throughput inference and efficient model serving capabilities. This enables the company to run these models reliably with scale and serve more token demand with the same amount of compute. The expected margin profile for AI Cloud is better than traditional CPU clouds for a few reasons: AI infrastructure is technically more complex with higher barriers to entry, there is strong demand with tight supply, customers prioritize proven performance, stability, and availability, and the company's cooling in AI chips and full stack AI capabilities allow for cost optimization. These factors, along with continued improvement in the customer mix, further support margin expansion.

A：Baidu's investment plans and key directions for future model iterations are to continue developing strong in-house foundation model capabilities as the model landscape moves quickly with active releases from players both in China and globally. The company believes that strong in-house foundation model capabilities are essential for continued advancement. The company has always believed that models ultimately create value through applications, so they will continue taking an application-driven approach with each iteration guided by real product needs. Baidu plans to keep improving Er's capability to understand user intent and assess content quality for more accurate, high-quality, and intelligent results in AI search. Additionally, the company will strengthen Er's text and multi-model capabilities to make digital humans more vivid, hyper realistic, and effective at engaging users and driving sales in e-commerce live stream. Baidu will also enhance coding capabilities to better support low-code, enabling users to build applications through natural language. The company is confident that early will continue getting stronger across all these areas and will continue making organizational adjustments to its model teams, evolving its structure as needed. Furthermore, Baidu will also continue developing a range of smaller, faster, and more efficient models, as well as model combinations optimized for specific scenarios.

A：AI powered businesses have exceeded 50% of Baidu's total revenue for the first time, reflecting AI's growing contribution and a more diversified revenue base. These businesses are still scaling and are expected to contribute to both revenue growth and margin expansion.

A：Baidu is investing in the most strategic AI opportunities with a focus on return on investment. Investments are expected to shape Baidu's margin structure for the future and create durable competitive advantages.

A：Key business areas for margin improvement include AI cloud infrastructure, driven by higher margins due to structural differences and increased demand; AI applications, which are naturally high margin with sticky subscription models and operating leverage; and the robot taxi business, where unit economics have improved and a path to profitability is becoming clear as Baidu scales up.

A：Baidu's strategy for international expansion includes leveraging the company's domestic operational experiences and scalable technology. Baidu has made significant progress in a short period and is preparing to enter new markets with an eye towards profitability and leveraging the accumulated experience from its successful operations in Hong Kong to expand to London and other markets.

A：Baidu's long-term role in the robot taxi ecosystem is still evolving and it's too early to define a specific role. The company's focus is on continuing to scale and deepen technology and operational advantages while maintaining global leadership. As the ecosystem matures, Baidu aims to capture long-term value.

A：Baidu's approach to capital allocation prioritizes maintaining strategic investment intensity in AI while preserving financial discipline and ensuring a sound cash position, healthy balance sheet, and long-term financing structure. Baidu has continued to invest in its AI capabilities while also focusing on shareholder returns through宣布新的回购计划和推出首次股息政策。

A：Baidu is continuously evaluating initiatives, including capital market initiatives, to unlock long-term value for the company. They will consider market conditions, regulatory requirements, and shareholder interests, and communicate with the market when there are meaningful developments.

A：Baidu recognizes that AI applications and agents are shifting the value of AI to the application layer. The company has a strategy for monetization that includes advertising-based models for search and AI agents, and subscription or usage-based models, as well as token-based pricing. Baidu also anticipates that in the future, people will pay for productivity gains, time savings, better experiences, and tangible results delivered by AI agents.

A：Baidu's AI portfolio focuses on real user needs and scenarios. Specific directions within the portfolio include enhanced search capabilities, digital humans, and AI coding products. These directions are driven by the belief that AI will be more prevalent in the application layer and that AI native applications will become a meaningful market. Digital humans and pharma agents are seen as having huge market potentials but are currently not being pursued by many companies.

A：Baidu is exploring new AI native product forms, such as the general-purpose agent named Dome, which integrates AI into daily workflows and tasks. Dome is stateful and sticky, enhancing user experience and engagement.

A：The global monetization of AI applications and agents is at an early stage with evolving models. Currently, token-based pricing is more common, where users pay for foundation models. However, over time, monetization will become broader and result-oriented, with users paying for productivity gains, time savings, better experiences, and tangible results.

A：Baidu views China's domestic AI chip market as early and fast-moving, with a structural shift in demand from training to inference and other applications. Although domestic AI chips face capacity and supply maturity challenges due to faster demand growth, the semiconductor industry is developing quickly and is expected to improve over time. Baidu believes that competition will increasingly depend on the ability of chips to perform reliably and efficiently across diverse real-world workloads. Col, a domestic chip, is well positioned in this market, as it is not only a cost-effective product but also a critical part of Baidu's AI stack, continuously optimized for cost efficiency, stability, and easy deployment. Col's strong and growing customer demand is expected to help capture future opportunities in the market.