Baidu in negotiations to raise $2bn to launch biotech company
Chinese search giant Baidu is negotiating with its investors to raise up to $2bn over three years to launch a new biotech company, reported Reuters on Thursday.
The company would be a standalone entity and not a subsidiary of Baidu, said a person close to the matter.
The biotech company will reportedly focus on using artificial intelligence (AI) and computing to create new drugs and for early-stage diagnoses of diseases.
Earlier this year, Baidu gave an algorithm it calls “LinerFold” to gene-testing agencies, epidemic control centers and research institutions for free.
That algorithm is designed to identify the genetic make-up of viruses, which could help develop a vaccine, even as the world fights to stop the rapid spread of Covid-19.
Baidu is also trying to expand into new areas from driverless cars to health technology, as it faces increasing competition in its core internet search engine business.