ByteDance Spins Out AI Drug Unit at $1.5B

ByteDance has spun off its internal AI drug-discovery operation as Anew Labs, which raised $290 million in its first external financing at a reported $1.5 billion valuation. ByteDance will retain a controlling 56% stake, while the new Shanghai-based company inherits the roughly 50-person team, algorithms, technology platform and drug-development pipeline built within ByteDance. The round was led by HSG, IDG Capital and Hillhouse Investment, with 5Y Capital as co-lead and participation from other venture, strategic and state-backed investors. Anew Labs operates in Shanghai, San Francisco and Singapore and is developing tools for protein-structure prediction, molecular generation, antibody design and scientific reasoning, along with several drug candidates. The separation reflects the differing timelines and management demands of pharmaceutical research, which requires lengthy validation and substantial investment, compared with ByteDance’s faster-moving internet businesses; ByteDance’s Volcano Engine will continue providing computing support.