Robin Li, chairman and CEO of Baidu, attends a dialogue with college students at University of Science and Technology of China in Hefei city, East China's Anhui province, October 17, 2016. [Photo/IC]

Baidu's news feed has also attracted and retained many mobile device users, according to Baidu board chairman and CEO Robin Li.

The company's news feed service profiled user's interested topics by analyzing their search history to offer customized news, which helped lift reading traffic by over 20 fold from July to September.

In the third quarter, Baidu set up two funds, Baidu Venture and Baidu Capital, to invest in projects in artificial intelligence (AI) and other Internet sub-sectors.

"We would offer more artificial-intelligence-based innovative products such as a Siri-like smart secretary and driverless cars," Li said.

As a pioneer in the AI industry, Baidu decided in early September to make its AI system's core capabilities and underlying technology available to program developers, start-up entrepreneurs and traditional companies.

Baidu would take proactive measures to raise customer quality and help create a healthier environment for the industry, according to Baidu chief financial officer Jennifer Li.

The company expects a year-on-year drop in revenue in the fourth quarter, according to the financial statement.