Baidu has unveiled a US $200 million venture capital firm dedicated to virtual reality, augmented reality, and artificial intelligence (AI) projects.

The new firm would be called Baidu Venture and will be handled by chief executive Robin Li Yanhong. It will work independently from Baidu’s existing investment teams, according to South China Morning Post. 

Like Us on Facebook

“The first-phase investment is planned at US$200 million, and the fund will invest in projects that are at their early stage,” the company said.

Industry observers have noted that Baidu is looking to expand its artificial intelligence expertise, jumping slowly from being a search and advertising business. Internet expert and CEO of Shanghai-based Wanqing Consultancy Lu Zhenwang said that Baidu urgently needs to find a new engine to get by with the slowing momentum of its established search business.

Baidu established a deep learning research institute in 2013. Recently, the company invested 15 percent of its profits in technology research, setting up facilities focused on big data and AI, China Money Network. 

The Chinese internet search giant recently announced a partnership with Nvidia to build a computer platform for self-driving cars. Baidu plans to fit cloud-based high-definition 3D maps with the ability to assess different road conditions. The company also plans to mass produce autonomous vehicles in the next five years and has invested in some related technologies such as $75 million into Velodyne LiDAR.

Li said that the company would benefit from entering the AI market earlier than its competitors. However, analysts have predicted that for the next few years, there will be no major growth drivers for the company beyond its search business unless it has chances upon a major breakthrough in AI technology.

TagsBaidu, Chinese search engine, AI, Artificial Intelligence, Virtual Reality, VR, Augmented Reality, AR, Self-driving cars, search engine business