Xiaomeng Zhuang

Xiaomeng Zhuang of Bank of America Securities inquired about how Baidu will compete with other AI applications and platforms, especially those with enhanced models or that leverage existing large-traffic super-apps.

Answer

Rong Luo, EVP of Baidu Mobile Ecosystem Group, stated that Baidu's strategy goes beyond competing with chatbots, which he sees as just one form of AI application. Baidu's approach is twofold: first, to make AI search more engaging with rich, multimodal content, and second, to expand search's utility to help users make decisions and get results via agents. Luo also highlighted Baidu's move towards openness by embracing protocols like MCP to integrate third-party tools and expand capabilities both within and beyond its platform.

Xiaomeng Zhuang of BofA Securities inquired how Baidu plans to compete with other AI applications and platforms, particularly those leveraging large existing traffic or offering advanced functionalities like deep search and agents.

Answer

EVP Rong Luo explained that Baidu's strategy is to fundamentally rethink the value of search in the AI era, not just compete with chatbots. This involves two key directions: 1) enhancing user engagement with rich, multimodal content, and 2) expanding search capabilities to help users make decisions and get results via agents. Luo also highlighted Baidu's move towards openness by embracing protocols like MCP to integrate third-party tools and unlock broader opportunities for the ecosystem.

Xiaomeng Zhuang requested an update on the Robotaxi business progress heading into 2025, including targets for fleet size and unit economics. She also asked about the industry's inflection point and Baidu's competitive strategy for scaling its operations.

Answer

CEO Yanhong Li emphasized Baidu's leadership, citing 1.1 million rides in Q4 (+36% YoY) and achieving 100% fully driverless operations. He highlighted the expansion into Hong Kong as proof of technological adaptability. For 2025, Li expects accelerated growth in fleet size and ride volume, with a strategic focus on asset-light models through partnerships with mobility providers and fleet operators to scale efficiently.

Xiaomeng Zhuang of Bank of America Securities requested an overview of the future technology roadmap for ERNIE, including upcoming milestones and their expected timelines.

Answer

Co-Founder and CEO Yanhong Li stated that Baidu is committed to continuously advancing its flagship models, with a new version of ERNIE expected early next year. He emphasized Baidu's distinct 'application-driven' approach, focusing on solving real-world problems like model hallucinations. Li also mentioned the company is proactively exploring multi-modal capabilities and applying foundation models to its autonomous driving business to create synergistic value.