00:00We were just talking about how it's a relatively small pool of autonomous driving software businesses.
00:07I mean, in China, for instance, there's DeepRow, there's Pony AI, there's WeRide, there's Mementa.
00:12Further afield, there's Tesla's version, there's Waymo in the U.S. as well.
00:17Yeah.
00:19Okay, maybe it's a little bit sensitive to start straight on competition, but who's out in front, do you think, right now?
00:24I think Tesla's still having the best AI, especially the physical AI, autonomous driving, and the robots.
00:34But the Chinese company catching up very quick.
00:37You know, in the AI industries, the latest technologies is on the papers.
00:43You can have the papers, you have a conference, people will exchange the idea very quick.
00:48And also China has a very good foundation of manufacturing.
00:54Especially for cars and robots, the first step, you need to manufacture it, right?
01:00Like, they still have like a wave, you know, Alex is my friend, you know, but a wave, you know, that's the only one in Europe.
01:10Yeah.
01:11Yeah, Alex is my friend, and he's doing great.
01:15But the same thing, for AI technologies, you need a lot of data.
01:19How you can get in data for robots, you need a lot of robots.
01:24You need manufacturing 10,000 of the red robots to collect in the data, right?
01:29Like the cars, like the robots.
01:32That's why you see many robot companies in China.
01:36But where's the edge that Tesla has?
01:39I know they've got the FSD system, but what is it that makes it stronger, in your opinion?
01:44And where are the weaknesses of China right now?
01:48I would say they, there's a difference in like the Silicon Valley and China.
01:56You know, I come from the Silicon Valley, the Bay Area, I know.
01:58They have a lot of the best talent AI people in Silicon Valley, but in China, they have the best manufacturing and the best hardware side.
02:12But what do you say?
02:13Because everyone talks about Hangzhou, for instance, you know, the six little dragons, the innovation scene inside China.
02:18You don't think it's comparable to what's in Silicon Valley?
02:21It's different, you know, in China, there's companies like the AI companies, they don't have that much AI companies, like AI people.
02:31The talent pool of AI side, China is less than the States.
02:36But for the hardware side, you know, especially when we're talking about the robots, right?
02:41They have U-Tree, they have many, maybe you can have 10 robot companies have comparable performance with Boston Dynamics.
02:50There's a hardware companies in China, they have many hardware companies, but there's a lack of AI companies, the AI people.
02:58Okay, so still maybe some talent shortages.
03:00I think it's interesting you mentioned Europe because, and people would say that, you know, Europe is sort of behind the US and behind China because the regulations are so strict there.
03:12No, no, no, not just that.
03:13No, no, no.
03:13Europe is, I don't want to.
03:15Okay, we'll move on, but what I want to, I do want to talk about regulations in the Chinese market.
03:20You know, when the people are talking about, especially in the AI, it's changing, normally they don't talk too much about Europe.
03:29Yeah, they will talk about, hey, China, the States, you know, yeah.
03:34Yeah, exactly, and that's what I want to talk about as well, US and China, but particularly on the regulation side, because there was the accident, and I'm talking more about regulations that you face as a business, there was the accident with Xiaomi in March, and it unfortunately resulted in fatalities, and there's been question marks over regulations in China.
03:52Maybe there's going to be, or there are now some tighter rules in the mainland.
03:57How does that affect your business?
03:59I would say the regulation is good.
04:02You know, the regulation is, they will stop the company.
04:06They don't have good technologies.
04:08But for company, for company like DeepRoute, we can provide you the software, really reliable, really safe.
04:14That is good for a company like us.
04:16So, you know, in China, maybe they have 10, they maybe have 50 autonomous driving companies, but there's companies with a lane, you know, that's a few, maybe a handful.
04:30Yeah, there's just a really handful that are sort of well-known, and we also start to see some of these companies, like WeRide, like Pony AI, they're signing deals and they're going international, with Uber, for instance.
04:42What's your plan for expansion?
04:44Our plan, so first is, for this year, so we're developing, so we have a plan in AI, and we're applying in marketing, there's different strategies.
04:58For the technology side, this year, we're deploying the VLA models.
05:02There's the next generation of the AI technologies in robots, right?
05:06We're deploying all those, our cars, this year, and there will be more than 10 car models, where you equipped with our native AI software in China.
05:17And for the marketing side, so we go internationally.
05:23So we were collaborating with the international OEMs, you know, providing the software for them, no matter in China, for China, or in China, for global.
05:34So, when you say you're collaborating with OEMs internationally, are you saying that there are OEMs in other markets, like OEMs in Japan, or Korea, the US?
05:43Yes.
05:43Yeah, I cannot say the names, you know, you're still sensitive.
05:47How many OEMs?
05:49Starting from one, right?
05:51Yeah.
05:52And where would those products be sold?
05:54Yeah.
05:55Which markets?
05:56We already have business centers in German, and we're already starting our road test in German, you know, under the regulations.
06:12Okay, maybe further expansion than in Europe, perhaps?
06:15Yeah, Europe, yeah.
06:16Okay, okay.
06:17That's a huge market.
06:19Yeah, there are some opportunities there.
06:21So, in the backdrop, of course, it's really also geopolitics and rising tensions between the US and China.
06:29There's questions also of the relationship between China and Europe.
06:33Maybe it looks a little bit better.
06:34But how is that also factoring into the conversations?
06:39Yeah, the regression right now, like the geo, but we believe the technology has low borders.
06:48You know, the better technologies, we're providing the better AI.
06:54We're following the local regulations, like the data regulations, the training regulations.
06:59Make sure our software, our AI models, you know, are under regulations.
07:08Just quickly, I want to ask about a news that's really making a lot of headlines today.
07:12And this relates to the US telling Harvard University not to accept any more foreign students.
07:19Yeah.
07:20Do you see that having any sort of bearing on the startup culture within China?
07:24And do you think that the university that you went to really matters right now?
07:28Yeah, that's what we're leading that claim.
07:31Yes.
07:32So, I graduated from the Tsinghua, you know, from the academic talent program.
07:40So, as I know, when I graduated, so 50 percent, they would go to the States.
07:48But now, only a few.
07:51Yeah.
07:52Yeah.
07:53They can have, like, an engineering offer and go to the States.
07:56They were needing, like, there will be some issues.
08:01So, more Chinese choosing to stay at home, essentially?
08:05Not anymore.
08:06Yeah.
08:07But the good thing is, you know, like China, Hong Kong, they are really building up this,
08:17building up the capabilities of AIs.
08:20So, the students no longer need a two States.
08:23And they can have, like, a PhD in Hong Kong and a PhD in China to get the latest AI technologies.
08:30That changes a lot.
08:31Right.
08:32Yeah, like one of our chief scientists.
08:35So, they are a full professor of Hong Kong universities.
Be the first to comment