- In BTW’s exclusive interview, Fa Zhang shares that AI investment strongly favors startups founded by top university graduates.
- Fa Zhang reveals in BTW’s exclusive that Poly Technologies prioritises deep tech innovation in AI over immediate commercialisation.
Introduction of Fa Zhang
Fa Zhang is a partner at Poly Technologies. Established in 1999, Poly Technologies is renowned for its focus on technology promotion and application services. The company is dedicated to advancing high-end manufacturing and cutting-edge technologies, including AI intelligent thermal management.
Zhang’s expertise is evident in his work with companies like All Things New (Shanghai) Intelligent Network Technology and Infinigence AI, concentrating on AI+chip integration and generative AI software. His recent participation in an AI conference in Beijing has further fueled his interest in innovations such as humanoid AI and robotic chefs.
Also read: Almost human: How close are we to perfecting humanoid AI?
Q: As an investor, what key factors do you prioritise when selecting AI startups?
When choosing AI startups, we primarily focus on the team’s background and technical capabilities. Market potential in AI is still emerging, and the commercial landscape isn’t fully developed yet. Our goal is to elevate a startup’s technical depth before pushing forward with commercialisation.
“AI’s commercialisation is still incomplete, so we concentrate on depth in innovation. Commercialising after achieving technical breakthroughs is a better approach.”
Fa Zhang
Q: Which areas of AI startups in China show the most innovation potential?
The biggest opportunities lie in the software space. Competing with major hardware manufacturers is challenging for startups. If you’re not from an academic background and your funding dries up, it can be disastrous. Areas like AI software assistants, video production, and video generation tools are where I see the most potential for innovation.
Q: How do you view China’s AI companies competing globally, and what challenges do they face?
“We are catching up, especially in model development. In terms of talent, we are quite competitive.”
Fa Zhang
We must acknowledge the gap between China and the U.S., especially in areas like AI models, data processing, and AI chips. However, we are catching up in model development. Talent-wise, we are quite strong. At Poly Technologies, we support our companies by providing network resources and leveraging our own AI products to help with orders and development.
Q: How do you think AI startups should balance innovation with commercialisation?
Right now, we focus heavily on technical innovation. AI commercialisation is still in its early stages, so focusing on deep technical breakthroughs before commercialisation is our preferred strategy.
Q: How do you view the future of AI models, and what is their investment value?
AI models are the foundation of AI’s future development. However, the investment value in AI models is still in the R&D phase, with many companies running at a loss. This is largely due to incomplete commercialisation and fierce competition in computing power. Despite the current downturn in AI investment, I’m optimistic about the future of embodied intelligence and image-based AI models.
Q: Does Poly Technologies have any specific areas of interest when investing in AI startups?
We are particularly interested in sectors like intelligent thermal management, high-end manufacturing, and smart industrial parks.
Q: What advice would you give to entrepreneurs looking to enter the AI field?
If you’re going into AI hardware, you must have an academic background. Without that, even if you secure initial funding, you risk bankruptcy if you can’t get further financing. We usually only invest in top graduates from leading universities, such as Tsinghua and Peking University.
Q: Can you share your impressions of this conference?
This conference highlighted the irreplaceable role of companies like Dell and Qualcomm in hardware. It was also exciting to see new companies focusing on AI models. What stood out is how big companies are increasingly focusing on green, low-carbon technologies, aligning with our own investment strategies.
Also read: 2024 Dell Technology Summit in Shanghai: Innovation soars, visionaries thrive
A personal insight
After the interview, I followed Fa Zhang’s personal account, where he regularly shares his in-depth views on the latest industry trends. I was particularly impressed by his profound expertise and precision in analysing AI developments. His insights into the challenges and opportunities in AI investment showcased his deep understanding of both the technical and financial aspects of the field. It was a pleasure to speak with someone so knowledgeable and thoughtful. I look forward to following his future contributions to shaping the AI startup landscape.
