Baidu Inc. has lost 20% of its market value in just one month, wiping out $11 billion in shareholder wealth. The steep decline reflects growing investor skepticism about China's AI sector, where companies face mounting pressure to deliver concrete results rather than just hype.

The selloff comes as competition intensifies in China's artificial intelligence market, with investors demanding proof of commercial viability. Baidu, once considered a leader in China's AI race, now finds itself under scrutiny as shareholders question whether the company can monetize its AI investments effectively.

This dramatic market reaction underscores a critical turning point for Chinese tech companies. Investors appear to be shifting from speculative enthusiasm to demanding tangible business outcomes, particularly as the AI sector matures and competition heats up. The $11 billion loss serves as a stark reminder that in today's market, even established tech giants must prove their AI strategies can generate real returns.