In a rapidly evolving landscape of artificial intelligence (AI), a recent report from CNBC’s “The China Connection” newsletter highlights significant insights from Chinese businesses, showcasing how they apply AI technology in ways that diverge from mainstream perceptions. This week, I spoke with Jerry Ye, co-founder of the AI startup Whale, which he established after his tenure as a data scientist at Meta. Since returning to China in 2017 at the urging of an investor, Ye has positioned Whale as a provider of AI software tools and hardware targeted towards retailers. The company, headquartered in Hangzhou and with a global base in Singapore, claims prominent clients, including Starbucks, Xiaomi, and Unilever.
Last week, Whale announced it successfully raised $60 million in a Series C funding round backed by investors such as Bosch Ventures, Singtel, and MDI Ventures. In our conversation, I asked Ye about the impact of the ongoing U.S.-China trade tensions. He emphasized a continuing global opportunity, stating, “Business is business. Our customers are global: Procter & Gamble, Watsons, Starbucks.”
On who might ultimately win the AI race, Ye noted that the two largest markets remain the U.S. and China, each developing applications uniquely suited to their needs-China focusing on marketing and sales and the U.S. on more niche sectors like transportation and legal services. He also pointed to Southeast Asia as likely to adopt AI scenarios similar to those seen in either of these leading markets.
When discussing the factors hindering AI development, Ye stated that China does not face a significant shortage of AI computing power, citing robust capacities among cloud companies. Moreover, advancements in on-device chips, which can efficiently run AI models while ensuring data privacy, are pushing competition toward edge computing rather than centralized data centers.
Ye expects that marketing and sales will be the first domains to monetize AI effectively. He suggests that the return on investment in these areas is easier to track, allowing businesses to see results almost immediately. “If you adopt AI in marketing and sales over seven days, on the eighth day, you will see results,” he explained.
Delving into content creation, Ye highlighted the growing importance of personalized content and the role AI plays in generating it. “With AI’s richer understanding, the decision-making is faster and easier,” he said, adding that while generative AI offers vast opportunities, it can also propagate misinformation. Thus, he believes that authentic, real-life videos are still crucial for conveying genuine emotions.
Whale’s operations align closely with major clients like Starbucks, enhancing customer experiences in real time. The company currently anticipates a revenue of 400 million yuan ($57 million) this year, aiming for sustained 100% annual growth.
Addressing data privacy challenges each region presents, Ye noted the distinction of various AI models in addressing different business needs. He remarked that while some companies prefer proprietary models for privacy, others leverage an array of open-source solutions for their flexibility.
As for future developments, Ye suggested that the main hurdles lie not within AI capabilities but in hardware, particularly power sources for devices like smart glasses. Creative applications, he believes, will ultimately dictate which products succeed in the marketplace.
In summary, Whale’s growth and insights reflect a dynamic AI sector in China, underscoring the broader implications for global tech landscapes and marketing strategies. As the U.S. and China navigate diplomatic complexities, ongoing developments in AI are set to shape the future of business in unprecedented ways.
Original Source: https://www.cnbc.com/2025/05/28/cnbcs-the-china-connection-newsletter-qa-with-temasek-backed-whale-ai-startup-jerry-ye.html
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Publish Date: 2025-05-28 09:51:00
