Anew Labs, a startup spun out of ByteDance that uses artificial intelligence to discover and develop drugs, has raised $290 million at a $1.5 billion valuation, Reuters reported Wednesday, citing two people with knowledge of the matter.
HSG, formerly known as Sequoia China, IDG Capital and Hillhouse Investment's GL Ventures reportedly led the round, while 5Y Capital joined as a co-lead investor. Gaorong Ventures, Primavera Venture Partners, Boyu Capital, SBP Group and the state-backed Shanghai Future Industries Fund also participated, Reuters reported.
The funding is Anew Labs' first external round, according to the report.
ByteDance will reportedly retain a 56% stake in Anew Labs following the fundraising. The TikTok owner is said to have spun off Anew Labs because AI drug discovery operates differently from its main businesses and requires a separate management approach.
Anew Labs uses AI to study biological molecules, design antibodies and identify potential medicines, according to its website. The Shanghai-based startup also has offices in San Francisco and Singapore.
Anew Labs' development pipeline includes a small-molecule drug, another drug targeting a protein on the surface of human cells, and two projects with undisclosed targets, according to its website.
ByteDance's AI efforts
ByteDance has been expanding across several areas of AI. Its products include Doubao, one of China's most widely used AI chatbots, and Seedance, a model for generating videos. Earlier this month, ByteDance reportedly secured a $30 billion loan as it expands its AI projects and computing infrastructure.
ByteDance is said to be also preparing an AI model for real-time spatial video generation that could launch as soon as next month. The model is expected to generate interactive virtual environments for uses including games, robotics and virtual-reality devices.
As for Anew Labs, it enters the AI drug discovery sector that has attracted several large investments. Google DeepMind spinout Isomorphic Labs raised a massive $2.1 billion round in May to expand its AI drug design platform, following a $600 million round in 2025. In July, U.S.-based Chai Discovery raised $400 million at a $3.8 billion valuation to develop AI models that design new molecules.