# Search advertising

Baidu’s High-Stakes AI Gamble: Profit Plunges as Search’s Cash Cow Dries Up

Baidu reported a 76% fall in net profit for 2025 after a RMB 16.2 billion impairment of legacy infrastructure, even as its AI business grew 48% to RMB 40 billion. The company is accelerating an AI-first strategy to replace shrinking search advertising, but the new business has yet to demonstrate margins or fully offset traditional revenue losses.