The restructuring is the search giant’s latest move to ramp up business amid challenges from emerging domestic rivals.
Chinese self-driving companies are in search of driving data, a critical component to commercialize the industry.
Automakers are reluctant to share data with internet companies.
Baidu CEO Robin Li said in 2017 that the company would seek to spin off its self-driving unit when it is mature enough.
The move signals the beginning of large-scale AV tests on public roads.
The financing comes shortly after AutoX moved its headquarters from Silicon Valley to Hong Kong, and opened a China R&D center in Shenzhen this year.
Guangzhou and Changsha are the first cities in China to allow companies to apply for passenger transport using driverless vehicles.
Regulators will allow driverless vehicle tests along 135 kilometers of the city’s public roads.
Changsha and Guangzhou are the two major Chinese cities aiming to rise above the rest in the country’s AV race.
The nearly 150-page document covers 12 areas including cybersecurity, driver-vehicle handovers, data recording, and component failures.