Baidu's Market Drop: Absence at Key Beijing Meeting Raises Concerns

Shares of Baidu fell sharply, losing $2.4 billion in market value, after founder Robin Li was absent from a key meeting with China's President Xi Jinping. This absence, amid strategic shifts towards AI integration, raised questions about Baidu's market position and future competitiveness.

Baidu's shares experienced a significant decline on Monday, shedding $2.4 billion in market value, amid concerns triggered by founder Robin Li's absence from a crucial meeting with President Xi Jinping and several business moguls in Beijing.

The meeting, which included high-profile figures like Alibaba's Jack Ma and Huawei's Ren Zhengfei, sparked speculation about Baidu's standing in the market, especially after it announced plans to link its search engine with Chinese AI start-up DeepSeek.

Market analysts noted that Baidu might be losing its competitive edge, particularly as it works to innovate beyond its traditional advertising revenue model. Despite launching the AI chatbot Ernie 4.0, comparable to OpenAI's GPT-4, Baidu faces growing pressures amidst China's evolving tech landscape.

(With inputs from agencies.)