Goldman Sachs predicts Baidu’s AI revenue will surpass traditional business segments by late 2026. The firm expects the AI division to grow over 30% annually. The firm projects AI cloud infrastructure will expand by more than 50% year-over-year. Surging demand for GPU-based cloud services in the first quarter drives this growth.
Baidu management targets cloud growth that exceeds market averages and key competitors. The company is prioritizing R&D for its Wenxin Yiyan model to boost Model as a Service (MaaS) revenue. Management acknowledges that current model capabilities require improvement. Goldman Sachs forecasts mid-term gross margins between 35% and 40% for the GPU cloud business.