China-based search engine giant Baidu has set up an investment fund of 20 billion yuan ($3 billion) to finance mid and late-stage deals in the internet sector.

Called the Baidu Capital, the fund will create investments from US$50 to US$100 million in internet companies, Tech Crunch reported.

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The funding is expected to come from industry funds, securities companies and government-backed investment institutions. 

The company said Baidu Capital will be "run by two or three managing partners from the investment industry" with a background in internet sector and private equity, according to South China Morning Post. However, they did not disclose any potential candidates.

Baidu's latest move reportedly suggests an attempt to future-proof the company as other huge firms, such as Tencent Holdings and Alibaba Group Holdings, grab more of China's mobile users' time via artificial intelligence, augmented reality and virtual reality front. 

Baidu has been actively making investment in start-up companies for years now. It includes investments in the consumer finance company Circle and the underwriting technologies company ZestFinance.

In 2013, it also built a deep-learning research institute and Baidu invested about 15 percent of its revenue in research.

This is not the first investment venture the company set up this year. In September, it established Baidu Venture, a US$200 million venture capital unit headed by chief executive Robin Li Yanhong that focuses and develops projects in augmented and virtual reality..

Other plans for Baidu include working on autonomous vehicles and introduce automated public transportation services in China within the next two years.

TagsBaidu, Internet Investment, Baidu Internet Investment, $3 Billion Internet Investment, Baidu Capital, Baidu Venture, Artificial Intelligence, Augmented Reality, Virtual Reality