Post by : Jyoti Gupta

Photo:linkedin

Suzhou, China – A Chinese speech tech company that began as a student project in Cambridge is now making waves in China’s booming artificial intelligence (AI) industry.

In 2007, PhD student Yu Kai launched a start-up with a classmate to help foreigners learn Chinese using speech recognition technology. Just a year later, the team moved back to China, choosing Suzhou over big tech cities like Beijing or Shanghai.

That move paid off. Their company, AI Speech, is now one of the leading players in conversational AI. The firm’s technology is used by top brands like Mercedes-Benz, BYD, Midea, and Haier. It also makes AI chips and smart office devices like voice-controlled microphones and speakers.

AI Speech has raised hundreds of millions of dollars in investment and is now officially listed as an AI “unicorn.”

Yu says China’s long-term planning and support for tech companies helped AI Speech grow. “China’s five-year development plans give stability and strong support, even if the policy isn’t directly about us,” he said. For example, China’s push for smart electric vehicles helped AI Speech, since its tech is used in those cars.

Suzhou city also played a big role. The local government met Yu while promoting investment in Cambridge, and later convinced his team to set up Suzhou Industrial Park — a special tech zone built with support from Singapore.

Compared to Beijing or Shanghai, Suzhou offered lower costs, better planning, and strong government support. In 2017, Suzhou became the first national development zone to make AI a top focus. By 2019, the city released its own plan to become a major AI hub.

Suzhou also offers cash support to fresh graduates who take jobs in key industries. New PhD holders can get up to 120,000 yuan as a bonus and 30,000 yuan per year as a job subsidy.

While companies don’t get direct subsidies, AI Speech works on government-backed research projects with universities. These projects bring funding and help turn new ideas into real products. “Now universities and companies work together more closely than before,” said Fan Shuai, the company’s R&D director.