# search advertising
Latest news and articles about search advertising
Total: 2 articles found
Baidu’s High-Stakes AI Gamble: Massive Write-Downs, Shrinking Ads and an Uncertain Payoff
Baidu’s 2025 results reveal a painful transition from search advertising to AI-driven products: revenue fell to ¥129.1 billion and net profit plunged 76% after a ¥16.2 billion impairment on obsolete compute. While AI revenue grew strongly, it has not yet replaced lost ad income and the company faces intense competition and uncertainty over AI unit economics.
Baidu Goes All‑In on AI After ¥16.2bn Write‑Down and 76% Profit Collapse
Baidu’s 2025 results exposed the costs of an urgent pivot: revenue slipped and net profit collapsed 76%, driven largely by a ¥16.2bn write‑down of obsolete compute assets. The company is reallocating around AI — reporting a fast‑growing ¥40bn AI new business — but faces intense competition, uncertain unit economics and the challenge of replacing evaporating search‑ad revenue.