Why Is Baidu Investing in an AI-Powered Biotech Start-Up?

Chinese tech giant Baidu (NASDAQ: BIDU) is in talks with interested parties to invest up to $2 billion in a biotech start-up over the next three years, according to Reuters. The company has been incubating the idea over the past six months, and CEO Robin Li is personally overseeing its development.

The start-up, which has yet to be named, will reportedly use Baidu's artificial intelligence (AI) tools to develop new drugs, diagnose tumors, and produce other "biological innovations." Baidu isn't expected to be the controlling shareholder in the new venture.

This wouldn't be Baidu's first step into the AI-powered healthcare market --earlier this year, it open-sourced its RNA prediction algorithm LinearFold to analyze viruses and develop vaccines. But will these new healthcare ventures move the needle for its core business, which still relies heavily on digital ads and its video streaming unit iQiyi (NASDAQ: IQ)?

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Source Fool.com