Baidu stock fell sharply in pre-market trading Wednesday. The decline extended losses from the previous session.
This drop mirrored a wider sell-off impacting the Hong Kong tech sector. Tencent and Alibaba also traded lower amid concerns over potential value-added tax changes targeting internet companies.
Baidu faces increased competitive pressure in the artificial intelligence arena. Rival Alibaba announced a 3 billion yuan ($432 million) promotional campaign for its Qwen AI app ahead of the Lunar New Year. This spending significantly outpaces Baidu's planned 500 million yuan for similar incentives.
In a separate development, Baidu acted as a strategic investor in a $100 million funding round. The funding targeted the Beijing Innovation Center of Humanoid Robotics, highlighting Baidu's continued focus on AI and robotics.