SHANGHAI - Xiao-I Corporation (NASDAQ: AIXI), a prominent AI firm in China, has secured a strategic agreement to provide its HuaZang Large Language Model (LLM) Chatbot for a Hong Kong public sector client's HR operations. This deal is expected to bring in an initial revenue of around 8 million Hong Kong dollars.
The Chatbot application is designed to improve the efficiency of various HR tasks, including handling inquiries, guiding users, and automating notifications for HR processes such as onboarding, offboarding, and benefits management. With its ability to continuously learn and categorize data, HuaZang LLM is expected to become increasingly effective over time, aligning with the client's changing needs.
Xiao-I's CEO, Hui Yuan, expressed confidence in the partnership's potential to drive digital transformation in the public sector and to establish a long-term relationship with the client. The agreement operates on a "Model-as-a-Service" (MaaS) framework, which promises a scalable and predictable revenue stream for Xiao-I.
Xiao-I Corporation specializes in cognitive intelligence technologies, including natural language processing, voice and image recognition, and machine learning. The company aims to support industrial digitization and intelligent upgrading with its proprietary AI technologies.
This press release includes forward-looking statements, which involve certain risks and uncertainties that could cause actual results to differ from those anticipated. These statements are based on the company's current expectations and are not guarantees of future performance.
The information in this article is based on a press release statement from Xiao-I Corporation.
In other recent news, Xiao-I Corporation, a leading AI technology firm, has seen significant developments. The company projects a revenue growth of 25% for the fiscal year ending December 31, 2024, and plans a reduction in research and development expenses to enhance profitability. Xiao-I also awaits a verdict in its patent infringement lawsuit against Apple (NASDAQ:AAPL), a case that revolves around alleged violations of its artificial intelligence intellectual property.
On the business front, Xiao-I has introduced Hearview Smart Glasses in the U.S. market and secured $3.26M in senior convertible notes from an institutional investor. The company has also announced collaborations with a major international insurance provider, a leading Chinese bank, and a key government agency in Hong Kong. These partnerships aim to improve customer service operations and knowledge management systems through the use of AI technology.
In addition, Xiao-I has renewed its contract with Inner Mongolia Yili Industrial Group Co., Ltd., adopting a subscription-based Model as a Service (MaaS) for its AI-driven customer service platform. Finally, the company has initiated an AI-driven Live Chat system for a major automobile industry client and is set to launch its latest product, OOTDiffusion, a virtual try-on technology. These are the recent developments in Xiao-I's ongoing commitment to leveraging its AI technologies to support the digital transformation and intelligent upgrading of industries.
InvestingPro Insights
As Xiao-I Corporation (NASDAQ: AIXI) secures this strategic agreement in Hong Kong, it's worth examining some key financial metrics and insights from InvestingPro to provide context for the company's current position and potential.
According to InvestingPro data, Xiao-I's revenue for the last twelve months as of Q2 2024 stands at $65.64 million, with a revenue growth of 6.22% over the same period. More notably, the company's quarterly revenue growth in Q2 2024 was an impressive 24.47%, indicating accelerating momentum that aligns with the new contract announcement.
One of the InvestingPro Tips highlights Xiao-I's impressive gross profit margins. Indeed, the data shows a gross profit margin of 61.27% for the last twelve months as of Q2 2024, underscoring the company's ability to maintain healthy margins in its AI-focused business model.
However, it's important to note that despite these positive indicators, another InvestingPro Tip reveals that Xiao-I has not been profitable over the last twelve months. This is reflected in the negative operating income of -$23.13 million for the same period. This context makes the new 8 million Hong Kong dollar contract particularly significant as the company seeks to improve its profitability.
Investors should be aware that while Xiao-I's stock has shown strong returns over the last month (12.99%) and three months (78.21%), it has experienced significant volatility. The stock price has fallen by 69.83% over the past year, indicating the challenges the company has faced.
For those interested in a more comprehensive analysis, InvestingPro offers 12 additional tips for Xiao-I Corporation, providing a deeper understanding of the company's financial health and market position.
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