From Cambridge to Suzhou: AI Startup's Journey to Unicorn Status

In 2007, a Chinese PhD student at the University of Cambridge launched a start-up with a former classmate, focusing on using speech recognition technology to help foreigners learn Chinese.

A year later, Yu Kai and his team returned to China, leveraging the country’s vast market and deep talent pool to propel their company’s growth. Swapping Cambridge for Suzhou – a city then more famous for its picturesque gardens and canals than its tech sector – may have seemed unconventional, but it proved to be an inspired move.

Yu’s company, AI Speech, is now a leader in conversational AI, riding China’s artificial intelligence boom. It has raised hundreds of millions of dollars over several funding rounds, earning recognition as an AI unicorn from the Hurun Research Institute.

AI Speech’s technology powers voice activation software used by carmakers Mercedes-Benz and BYD, as well as smart home brands Midea and Haier. The company also develops AI chips and smart office devices like microphones and speakers.

Though the company’s funding primarily comes from private investors and its own revenue, China’s industrial policies have played a significant role in supporting AI Speech, according to Yu.

Suzhou Industrial Park in eastern China’s Jiangsu province has made artificial intelligence a key focus, providing a fertile ground for startups like AI Speech to thrive. The region’s supportive ecosystem, including access to talent, resources, and government incentives, has been crucial in the company’s journey to unicorn status.

AI Speech’s success story is a testament to the potential of combining global education with local innovation. By leveraging the strengths of both Cambridge and Suzhou, Yu and his team have created a company that is not only a leader in its field but also a symbol of China’s rising AI prowess.