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Baidu Inc has launched its first venture capital firm focusing on artificial intelligence, becoming the Chinese internet company's latest effort to stake a spot in the burgeoning technology field.
Baidu Venture will focus on early-stage projects in AI and other next-generation technologies, such as augmented reality and virtual reality, according to a company statement on Sept 13.
The firm has been equipped with an initial investment fund of $200 million.
Baidu says the company is an independent entity, separate from its existing investment and acquisition team, so that it can "use an innovative evaluation mechanism to speed up the decision-making process and make investments more efficient".
Industry observers have seen the move as Baidu's latest effort to grow its AI expertise, to jump-start a slowing search and advertising business, which is constrained by tighter government control on online advertising.
Lu Zhenwang, an internet expert and CEO of Wanqing Consultancy in Shanghai, says Baidu urgently needs to find a new engine to cope with the slowing momentum of its traditional search business.
Baidu's net income for the quarter ending June 30 was 2.4 billion yuan ($359 million; 319 million euros; 272 million), down 34.1 percent year-on-year, as the company faced heightened regulation in the healthcare sector and on internet advertising.
Zhao Ziming, an analyst at internet constancy Analysys in Beijing, says by setting up a venture capital firm Baidu could more quickly absorb startups into its AI business and expand its presence in the entire industrial chain.
"The move is expected to enable Baidu to gain some strong advantage in the AI competition," he adds.
Robin Li, CEO of Baidu and chairman of the venture capital firm, has on previous occasions pledged to shift the internet company's business from a search-oriented model to one based on AI. At the recent Baidu World Conference, the company's annual event to showcase its latest technology, Li again stressed the importance of AI.
"AI is the next big development in the internet industry, which is the core of Baidu. We have made a great effort in developing this technology over the past five to six years," he says.
Many of the areas Baidu is betting on, such as driverless cars and Duer, a Siri-like voice assistant, all depend on the development of AI.
mengjing@chinadaily.com.cn
