# Li Yanhong

Baidu’s High-Stakes AI Gamble: Heavy Losses, Big Write‑Downs and a Bet on a New Engine

Baidu reported a 76% drop in net profit for 2025 after a RMB162bn write‑down of obsolete compute assets, even as its AI businesses grew. The company is aggressively restructuring around AI but faces fierce competition for user attention and unresolved questions about whether AI revenue can replace lost search advertising.