Baidu Inc. is set to issue its first dividend and launch a $5 billion share buyback program spanning until the end of 2028. This move aims to appease investors after a multi-year decline in the Chinese search giant's market value. The Beijing-based company, which is also a major player in AI, will report its earnings later this month.

The internet firm's action follows similar moves by Tencent and Alibaba, reflecting a broader trend of Chinese tech companies enhancing shareholder returns. Baidu, one of the earliest to embrace artificial intelligence, has seen its shares fall approximately 14% from their 2026 high. The buyback program will cover the period through the end of 2028.

Baidu's strategy is designed to boost investor confidence. Experts note the buyback is a step in the right direction, though the amount may be relatively small. Other major Chinese firms listed in Hong Kong are also buying back shares, including Xiaomi and Geely. The moves come as these firms compete for users.

This announcement arrives amid a fading AI rally, putting pressure on Baidu to demonstrate its value. The company's Hong Kong-listed shares initially rose after the announcement. Baidu is also giving away credits to spur use of its ChatGPT-style apps, a common tactic among tech giants in China.