Baidu released its Q4 2023 financial report, which met expectations overall. The improvement of AI on the advertising system was a significant factor in its revenue growth. Baidu's advertising growth was weak, facing issues with insufficient competitive advantage. Baidu's intelligent cloud business began to recover, but the growth was mainly influenced by the low base effect. Dolphin Research believes that Baidu's valuation depends on macroeconomic conditions and competition for platform traffic, with AI being the decisive factor in whether Baidu's valuation can regain vitality. The market is starting to demand tangible monetization from companies with high AI content, and Baidu needs more incremental growth to offset the impact of macro pressures. It is expected that AI could contribute around 5% growth to the core business, which is crucial for the repair of Baidu's valuation.