Chinese technology behemoth Baidu is reportedly seeking to raise $2 billion for a biotech startup that will leverage artificial intelligence (AI) for drug development and disease diagnosis.

The initiative for the startup was conceived by Baidu earlier this year, and discussions are currently underway with potential investors. However, Reuters reports that Baidu, primarily known for its internet-related services, is not expected to be the predominant investor in the venture, according to individuals familiar with the matter.

Utilizing Baidu’s AI technology, the startup aims to identify and develop drugs while also focusing on early-stage cancer diagnosis, as disclosed by anonymous sources to Reuters.

Involvement of Baidu’s Founder Robin Li, the founder and chairman of Baidu, is said to be actively engaged in the startup, which has yet to be officially named, according to the sources.

Earlier this year, Baidu introduced a tool capable of analyzing the structural information of a virus within a remarkably short span of 27 seconds, down from the previous 55 minutes. This development aids in comprehending viruses better and expedites the vaccine development process, particularly in combatting COVID-19.

Amidst Global Healthcare Investments The discussions surrounding the biotech startup coincide with increased investments by governments worldwide in their healthcare infrastructure and efforts to combat the coronavirus pandemic.

As biotech firms leading vaccine development efforts gain prominence in the healthcare sector, insights from 12 biotech venture capital investors at renowned firms such as ARCH Venture Partners and Venrock shed light on the potential breakthroughs expected in the coming year. Notable among the 21 biotech startups identified are Datavant, Encoded Therapeutics, and Let’sGetChecked, each offering innovative approaches ranging from at-home diagnostic tests to cell therapy.