Chinese tech giant Baidu reported a slight decline in revenue for the second quarter of 2025, weighed down by the ongoing drop in consumer spending in the country, even as the company accelerates its push into artificial intelligence, AFP reported.

The Beijing-based operator of China’s largest search engine has traditionally relied primarily on online advertising, making it particularly vulnerable to swings in consumer behavior. Revenue for the period reached 32.7 billion yuan ($4.56 billion), a 4% year-on-year decrease, according to the report published on the Hong Kong Stock Exchange. Online marketing revenue fell 15% to 16.2 billion yuan.

China’s economy remains in an uncertain position amid a years-long real estate crisis, high unemployment, and tensions in trade relations with the United States. Retail sales grew more slowly than expected in July, official data show.

After years of strict regulation in the tech sector, authorities in Beijing are betting that breakthroughs in artificial intelligence can become a driver of economic recovery.

Baidu said its net profit for the quarter was 7.3 billion yuan — up 33% from the same period last year, but down 5% from the previous quarter. The company is investing heavily in AI and is competing directly with other Chinese giants such as Tencent, Alibaba, and ByteDance.

Baidu is also developing autonomous transport services. Together with Lyft, it plans to launch robotaxis in Germany and the United Kingdom in 2026, pending regulatory approval. In July, in a joint statement with Uber, the company announced that this year it will offer driverless cars in ride-hailing apps in Asia and the Middle East. | BGNES