ByteDance’s artificial intelligence drug discovery unit has begun the process of spinning off and raising independent financing, according to people familiar with the matter.
ByteDance will retain a controlling stake in the new company after the spinoff, the people said. The AI drug discovery unit’s team, algorithms, technology platform, and existing pipeline assets will be transferred into the new entity. The business will also continue to receive computing power support from Volcano Engine.
Founded in 2021 and led by Kai Liu, the unit has about 50 core members, sources told 36Kr. The team includes AI-for-science (AI4S) talent, algorithm specialists, and pharmaceutical experts. Since its launch, it has worked across foundation model research, platform development, and commercialization.
ByteDance’s team previously responsible for protein structure prediction models has also been folded into the AI drug discovery team led by Liu. The related algorithm and model teams have completed their integration and will continue advancing foundation model research in the field. A small number of employees have left.
The progress of ByteDance’s AI drug discovery unit has given the company a basis to pursue the spinoff financing.
