Chinese AI startup Cloudwalk Technology is preparing to launch its large-scale AI model on May 18, according to tech website 36Kr, which referenced an insider familiar with the matter.
The company is designing its AI model to serve specific industries, including finance, gaming, and transport, as per the 36Kr report. The firm’s official WeChat account mentioned an event planned for May 18 to introduce a product that promotes human-machine cooperation.
Guangzhou-based Cloudwalk Technology [SHA:688327] experienced a share price drop of around 3.3%, closing at CNY36.5 (USD5.3) today. Despite a decline of over 40% since last month’s beginning, the shares have still increased by 150% since the year’s start.
As ChatGPT and similar AI offerings gained traction, Cloudwalk Technology’s stock price nearly quadrupled earlier this year but fell last month following the startup’s underwhelming performance in its 2022 annual earnings report.
In the previous year, Cloudwalk posted business revenue of CNY526 million (USD76 million), representing a 51% annual decrease, and a net loss of CNY869 million, surpassing the CNY632 million net loss in 2021. Furthermore, the company’s AI-related revenue reached just CNY2.85 million (USD412,022.5), down 87% year-on-year.
The company cited slower macroeconomic growth, intensifying market competition, and significant R&D investments as reasons for its reduced business revenue. During last year’s first three quarters, R&D expenses constituted approximately 94.2% of its total business revenue.
The firm went public on the Shanghai Stock Exchange in the previous year, raising a total of CNY1.73 billion (USD250.1 million). On April 26 of this year, it announced a private placement plan, aiming to raise around CNY3.6 billion (USD523.8 million) to fund R&D for its large AI model.