Shen Dou, Executive Vice President of BIDU-SW (09888.HK)  -2.500 (-1.829%)    Short selling $361.85M; Ratio 30.167%   and President of Baidu AI Cloud Group, remarked that the Group's addressable market continues to expand. Amid an environment of strong demand and relatively tight supply, Baidu is ambitiously expanding computing power capacity and improving resource utilization efficiency to better support growing customer demand.

Regarding margins, Shen said the core driver lies in changes in business mix. GPU cloud typically delivers higher margins than traditional CPU cloud for several reasons. First, GPU cloud is technically more complex with higher entry barriers. Baidu is in fact one of the earliest cloud service providers in China to scale up GPU cloud deployment and has consistently maintained an industry-leading position.

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Second, demand remains very strong while high-quality supply is relatively tight, Shen said. Customers place greater emphasis on product stability and availability rather than solely on cost. In addition, Baidu's in-house chips and full-stack AI capabilities provide further room for cost optimization, while continuous improvement in customer mix also helps enhance margins.

As GPU cloud accounts for a growing proportion of overall cloud infrastructure revenue, Shen believed the overall margin of Baidu Cloud will continue to improve. This represents a structural long-term trend. He said the Group remains confident in the long-term profitability of Baidu Cloud.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-05-20 16:25.)

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