According to Reuters, the company aims to secure its share of the Internet search market in China after rivals like Qihoo 360 Technology launched its service and caused Baidu shares to fall 17%.
Baidu currently represents 80% of China's PC Internet search but has been late coming into the mobile search market within the country.
The company said it hopes that at least 80% of China's mobile handsets will have downloaded its browser by the end of 2012.
Baidu says its mobile browser can play HD videos without plugins or extra software.
The currently available browser is offered in Chinese and English for Android and Windows Phone, handling up to 100,000 web applications.
The company also plans to invest $1.6bn in clouding computing over the next few years.
Baidu said in a statement that the investment will go towards building data centres and hiring new staff for its online data storage service.
Baidu's cloud platform is now available to access personal cloud storage for free and to download third party applications.
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