Baidu Inc. experienced its largest revenue decline in over two years due to China's economic challenges impacting its generative AI initiatives.

In the third quarter ending in September, the company's revenue dropped by 3% to 33.6 billion yuan ($4.6 billion), which was in line with analysts' expectations.

Although net income for the period reached 7.6 billion yuan, the disappointing sales figures caused Baidu's shares to decrease by over 2% during pre-market trading in the United States.

These results highlight the ongoing difficulties faced by the tech giant in a sluggish economic environment.