- tech360.tv
Shanghai-based Xiao-I Corp Eyes Global Expansion With AI Chatbot
Updated: Jan 3
[Edited] Shanghai-based artificial intelligence (AI) chatbot firm, Xiao-I Corp, is gearing up for global expansion following its successful initial public offering (IPO) on the Nasdaq.
With a market value of over US$400 million, Xiao-I aims to make international sales account for half of its revenue, according to founder and CEO Yuan Hui. The company plans to launch a large language model in June, targeting business clients to further enhance its offerings.
Yuan Hui, the visionary behind Xiao-I Corp, was inspired by a speech given by Microsoft co-founder Bill Gates. After attending a conference where Gates shared his experiences, Yuan quit his job and founded Xiao-I in 2001. The company's journey began with the development of a chatbot in 2003, which gained popularity during the SARS outbreak in China. By 2008, Xiao-I had amassed over 100 million users globally.
However, monetizing the technology proved challenging as consumers were reluctant to pay for the chatbot. In response, Yuan made the strategic decision to pivot towards serving business clients exclusively. This shift proved successful, with Xiao-I now serving over 1,000 business clients across 50 industries, including major telecoms network operators, commercial banks, and tech giants like JD.com and Huawei Technologies.
In 2021, Xiao-I generated US$32.5 million in revenue, marking a significant increase of nearly 135% from the previous year. The company turned a profit of US$3.4 million, a remarkable turnaround from the US$7.1 million net loss recorded in the previous year. Backed by Alibaba Group Holding, Xiao-I is poised to capitalize on the growing enterprise market and explore opportunities in the consumer market.
With the rise of OpenAI's ChatGPT, Xiao-I plans to expand its presence in the enterprise market while also venturing into new consumer market segments. The company has quadrupled its research and development budget to US$24 million and aims to leverage large language models to provide more natural and comprehensive services. Xiao-I will launch its own language model in June, along with innovative applications.
Yuan envisions Xiao-I's sales outside mainland China accounting for more than 50% of the company's total revenue within the next five years, a significant increase from the current 10%. With the IPO proceeds, Xiao-I is well-positioned for international expansion and aims to establish itself as a global leader in AI chatbot technology.
In conclusion, Xiao-I Corp's successful IPO has paved the way for its global expansion plans. With a focus on business clients and the launch of a new language model, the company aims to solidify its position in the AI chatbot market. As the world wakes up to the potential of conversational AI, Xiao-I is poised to make its mark on the global stage.
Shanghai-based Xiao-I Corp aims to make international sales account for half of its revenue following its successful IPO on the Nasdaq.
The company plans to launch a large language model in June, targeting business clients to enhance its offerings.
Xiao-I has served over 1,000 business clients across 50 industries, including major telecoms network operators and tech giants.
Source: SCMP