0922 GMT - Baidu may step up 2026 capital spending as it views AI model development as a core priority, Daiwa analysts say in a research note. Baidu management aims to re-prioritize investments towards foundational model capabilities, aiming to return to tier-1 positioning in China, the analysts said. Baidu's total AI investment this year, including capital expenditure and operational expenditure, could potentially exceed 2025 levels of US$4 billion, they say, adding that investment intensity could remain elevated over the next 12 to 18 months as Baidu accelerates efforts to close the AI model capability gap. Daiwa thinks this investment is necessary to strengthen its long-term competitiveness although it may weigh on near-term margins. Shares last ended 2.2% higher at HK$115.60. (sherry.qin@wsj.com)

(END) Dow Jones Newswires

June 12, 2026 05:22 ET (09:22 GMT)

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