Chinese search giant Baidu reports better-than-expected earnings and looks to the future with ChatGPT-style services
- Beijing-based company reported revenue of 31.1 billion yuan for the first quarter, a 10 per cent year-on-year increase
- Co-founder and CEO Robin Li says ‘emergence of generative AI and large language models present transformative potential for AI’
Baidu, which operates China’s biggest search engine and is an artificial intelligence (AI) pioneer, beat revenue estimates for the first quarter in the company’s first earnings report since it launched its alternative to ChatGPT in March.
The Beijing-based company reported revenue of 31.1 billion yuan (US$4.5 billion) for the first quarter, a 10 per cent year-on-year increase and beating analysts’ estimates. Net income hit 5.8 billion yuan for the period, compared with a loss of 885 million yuan in the first quarter of 2022, according to results released on Tuesday.
Although the company still relies on advertising for the bulk of its revenue, Baidu has made it clear that its future lies with AI.
“We believe the emergence of generative AI and large language models (LLMs) present transformative potential for AI in various industries, to help people and organisations to achieve more and have a positive impact on society,” said Robin Li Yanhong, co-founder and CEO of Baidu.
In an evening conference call with analysts, Li said the advent of generative AI “can be compared to the introduction of the internet”, providing tremendous opportunities.