Analysis of Baidu's AI Chip R&D Investment: Discussion on Kunlun Chip Business and R&D Proportion

Based on the currently available public data, the question regarding the proportion of Baidu’s AI chip R&D investment to revenue needs to be analyzed from the following aspects:

According to the latest public financial data, Baidu’s R&D investment is very substantial:

• R&D investment in the first three quarters
  : 14.84 billion yuan
• Revenue in the first three quarters
  : 96.34 billion yuan
• R&D to revenue ratio
  : approximately
  15.5%
  [1]
• Quarterly distribution
  : Q1 was 4.544 billion yuan (accounting for 14% of revenue), Q2 was 5.119 billion yuan (16% of revenue), Q3 was 5.179 billion yuan (17% of revenue)[1]

• Cumulative R&D investment over the past decade
  : over
  180 billion yuan
  [2]
• Annual average R&D investment proportion
  : maintained at
  over 20%
  [2]

Kunlun Chip is Baidu’s self-developed AI chip brand and the core of its AI chip strategy:

• 2024 Revenue
  : 2 billion yuan, with 69,000 units shipped[2]
• Expected Revenue in 2025
  : 3.5 billion yuan, with an expected shipment of 130,000 units[2]
• Independent Listing Progress
  : Kunlun Chip is advancing the process of independent listing

• R&D History
  : 15 years of investment (starting from the establishment of the Deep Learning Research Institute in 2012)[2]
• Technical Positioning
  : One of the only three domestic AI computing power enterprises in China that can simultaneously support cloud training and edge inference[2]

: Baidu has not separately disclosed the specific R&D investment amount and proportion data of AI chips (Kunlun Chip). Inferences are made based on the following analysis:

1. Industry Comparison
   : R&D investment in the AI chip industry is usually high, possibly reaching 30-50% of revenue
2. Company’s Overall Strategy
   : Baidu invests over 20% of its revenue in R&D, with a cumulative 180 billion yuan in the past decade[2]
3. Kunlun Chip Development
   : As a core component of Baidu’s AI strategy, Kunlun Chip should have obtained a considerable proportion of R&D resources

Since Baidu has not separately disclosed the R&D investment data of Kunlun Chip AI chip,

. However, the following points can be confirmed:

• Baidu’s overall R&D investment accounts for approximately
  15-20%
  of revenue[1]
• As a core business of Baidu’s AI strategy, Kunlun Chip should have received significant R&D resource inclination
• Baidu has invested over 180 billion yuan in R&D in the past decade, reflecting its high emphasis on technological innovation[2]

If you need more detailed financial analysis, it is recommended to pay attention to the R&D expense disclosure in Baidu’s quarterly financial reports, or wait for more detailed financial information disclosure after Kunlun Chip’s independent listing.

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:
[1] OFweek - “Baidu’s Comeback: 180 Billion R&D Investment, AI ‘Arsenal’ Fully Open?” (https://mp.ofweek.com/ai/a256714688597)
[2] Phoenix Tech - “Baidu’s Value Regression: More Than Just Kunlun Chip” (https://tech.ifeng.com/c/8pdnGscJGho)