Editor's note:
Known as China's Silicon Valley, Shenzhen is rapidly evolving into an innovation hub for artificial intelligence (AI), propelled by the government's supportive policies, the city's abundant pool of entrepreneurial talent, and a vibrant ecosystem. As AI continues to revolutionize industries and redefine the global landscape, "AI Shenzhen" seeks to offer readers valuable insights into the city's burgeoning AI sector, revealing the latest developments and emerging trends.
Nestled in Bao'an District's famed Taihua Wutong Island, an office block portrayed by local writer Wang Guohua as a wonderland for both wild creatures and human beings, Sengine Technology embodies the features typical of a Shenzhen tech startup: ambitious entrepreneurs with groundbreaking ideas collaborating with young and enterprising staff in a compact space buzz with activity.
Just a year into its establishment, the company, aiming to transform the traditional interior design sector with artificial intelligence (AI)-powered tools, has achieved some significant milestones that any startup would desire.
In early 2024, it successfully completed an angel round of financing, raising "tens of millions" from top financial institutions as well as industry strategic investment entities such as Hong Kong X Technology Fund (HKX Fund), Clearwater Bay Capital, Chongqing Center for Construction Robotics, and Detao Capital, according to Sengine Technology CEO Liu Zidong.
Liu, a Ph.D. student specializing in AI design at the University of Texas at Austin, the United States, has suspended his doctoral program to start up. He mentioned that with around 40 staff members, the company has introduced two major products: "Sengine AI," an AI home design platform intended for business clients, and "Flash AI," an AI home decoration mall catering to individual consumers.
"Our focus is on researching and developing AI design applications for interior spaces. Sengine AI, our flagship product, has gained positive traction in this emerging market, attracting leading Chinese home decoration manufacturers like GoldenHome Living Co. to forge strategic partnerships. Flash AI has already garnered over 2,000 online users," Liu stated.
Consequently, the company has secured deals exceeding 10 million yuan (US$1.4m) in the second quarter alone and expects a revenue of at least 20 million for the year, according to Liu.
"The current real estate downturn presents an opportunity for disruptors like us. During the housing boom, the sales were so swift and the demand was so strong that no home decor suppliers would see the need of paying for such services as provided by us, but now it's a different story."
Using Sengine Technology's applications, interior designers or furniture vendors can present 3D renderings of future homes to potential clients with a few clicks and mouse drags, which will greatly reduce the time a consumer needs for making a purchasing decision.
In a market with few direct competitors, Sengine Technology is positioned as a promising player, according to Liu. The company has received recognition from Nanshan District's science, technology, and innovation bureau, which has included it in an initial group of fostered AI startups, with the right to settle down in a local AI industry park in addition to other support.
"Shenzhen has provided us with fertile ground to experiment and explore," Liu said, citing the city's miraculous reputation, rapid development, and operational efficiency as constant sources of motivation.
"Shenzhen is lauded for its highly effective governance and a rich pool of young, practical, and excellence-driven talent. Additionally, the city boasts successful entrepreneurial paradigms like Tencent, DJI, and Huawei, which not only serve as inspirations but also offer tangible support to startups like us through talent development and investment," Liu said.
This sentiment was shared by Justin Zeng, who recently joined Sengine Technology as a partner and chief financial officer. A Hong Kong resident with experience in a U.S. corporation, Zeng considers Shenzhen a haven for young entrepreneurs, offering unique advantages such as affordable rents and a vibrant innovation ecosystem. He also recognizes the potential heralded by AI advancements and Shenzhen's prominence in AI development.
"AI is poised to revolutionize nearly every industry, presenting vast opportunities for young entrepreneurs who can harness AI for societal betterment," he said.
At the end of last year, Shenzhen was home to 1,646 AI companies, ranking third among Chinese cities, official data showed. The city's core AI industry scaled to 38.7 billion yuan by the end of last year, marking a 12.1% increase from a year ago, according to the Shenzhen Artificial Intelligence Industry Association. Shenzhen-based entities filed for 6,080 AI-related patents last year, ranking the city at second among major Chinese cities, as per the association.
In November 2022, Shenzhen took the lead in the nation to institute a local regulation dedicated to bolstering AI development.
The regulation seeks to promote the AI industry by encouraging government agencies to be the early adopters and enhance financial support for AI research in the city.