Despite the artificial intelligence rally, the revenue of Chinese technology giant Baidu declined. The company generated a revenue of 34.1 billion yuan in the last quarter of the year. There are talks of Baidu losing favor in the eyes of Beijing due to criticisms related to its artificial intelligence technology. The balance sheet of Chinese technology giant Baidu has shown mixed results. Despite the China technology rally that started with DeepSeek, Baidu recorded a decrease in revenue in the three-month period ending in December, falling below expectations. Concerns over the company’s performance have eased with the intense competition faced by its internet search and artificial intelligence businesses. During this period, the company’s revenue decreased by 2% to 34.1 billion yuan (4.7 billion dollars). Expectations were around 33.4 billion yuan in revenue. Criticisms were made regarding Baidu’s position in artificial intelligence compared to its rivals like Alibaba and Tencent who were more positively impacted by the artificial intelligence rally. Baidu’s shares have increased by 9% in the past month, while Alibaba’s shares increased by 50% and Tencent’s shares by 30%. Criticisms have also been made regarding Baidu’s leadership in the field of artificial intelligence. The company was the first among Chinese technology giants to launch an artificial intelligence language model. However, they monetized the Ernie artificial intelligence by making it a paid service. Later, the application fees were removed, and users were refunded. On the other hand, it was alleged that Baidu CEO Robin Li did not attend a critical meeting with Chinese President Xi Jinping, technology moguls, and entrepreneurs. Following the claims of Li’s absence from the meeting, Baidu’s shares experienced a decrease of nearly 10%. This development was interpreted as a sign of Baidu, once considered a major competitor of OpenAI, falling out of favor.