Financial Data and Key Metrics Changes - In Q3 2025, total revenues were RMB 31.2 billion, a decrease of 7% year-over-year [26] - Baidu Core reported total revenue of RMB 24.7 billion, also down 7% year-over-year [26] - Baidu Core's online marketing revenue decreased by 18% year-over-year to RMB 15.3 billion, while non-line marketing revenue increased by 21% year-over-year to RMB 9.3 billion [26] - Operating loss was RMB 15.1 billion, with a margin of 61% for Baidu Core [28] - Net loss attributable to Baidu was RMB 11.2 billion, with a diluted loss per ADS of RMB 33.88 [29] Business Line Data and Key Metrics Changes - AI Cloud revenue reached RMB 6.2 billion, increasing by 21% year-over-year [26] - Subscription-based revenue from AI accelerator infrastructure surged 128% year-over-year, becoming the primary driver of AI Cloud's expansion [4][23] - Revenue from AI-native marketing services, including agents and digital humans, reached RMB 2.8 billion, up 262% year-over-year [14][26] Market Data and Key Metrics Changes - Apollo Go provided over 3 million fully driverless operational rides in Q3, representing a 212% year-over-year increase [9][17] - Apollo Go's global footprint expanded to 22 cities, up from 16 last quarter [11] - Baidu App's MAU reached 708 million, up 1% year-over-year, with daily average time spent per user increasing by 2.3% year-over-year [20] Company Strategy and Development Direction - The company is focusing on AI-driven innovations across its business lines, including AI Cloud, autonomous driving, and AI-native marketing services [4][22] - Apollo Go is entering a phase of rapid global expansion, with plans to scale operations and improve technology based on operational data [10][49] - The company is committed to enhancing its AI capabilities and expanding its AI-powered revenue streams [22][44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory of the AI Cloud business, driven by strong demand for AI-centric services [36] - The company anticipates that the AI transformation will create long-term competitiveness, despite near-term pressures on revenue and margins [52] - Management highlighted the importance of continuous innovation in AI applications to capture long-term opportunities [42] Other Important Information - The company introduced a new AI-native view to better reflect valuation drivers based on its current portfolio [22][43] - Total cash and investments as of September 30, 2025, were RMB 296.4 billion [30] - The company has invested over RMB 100 billion in AI since March 2023 and plans to maintain high levels of investment [55] Q&A Session Summary Question: How will Ernie 5.0 drive the next stage of application? - Management emphasized an application-driven approach for Ernie's iteration, focusing on enhancing digital humans and FM Agents for better user engagement and efficiency [31][34] Question: What is the outlook for the cloud business? - Management noted that the cloud business is growing above the industry average, with strong demand for AI-centric services expected to continue [36][38] Question: How is AI search monetization progressing? - Management reported that nearly 70% of mobile search result pages now contain AI-generated content, with ongoing tests showing promising early monetization results [50][52] Question: What are the plans for Apollo Go's global expansion? - Management outlined plans for continued scaling of operations, adding more cities, and improving technology based on operational data [48][49] Question: What is the rationale behind the asset impairment this quarter? - Management explained that the impairment was part of a comprehensive review to align the asset base with advanced AI computing demands [55]