The Golden Age of Artificial Intelligence:

Opportunities for an AI scientist

Dr. Kai-Fu Lee

Chairman and CEOSinovation Ventures

October 2016

10 years from now, artificial intelligence will replace 90% of the world’s ...

• Can you play a million Chess games a day, while learning from AlphaGo？• Absorb the cumulative daily experience of Tesla from a million vehicles?

• Instantly compare all of the world’s airport cameras against all wanted criminals’ faces?

Translation Reporters Assistant Police Taxis

Sales Service Traders Accounting Maids

Artificial intelligence is not just an "imitation of the human", but it usually

goes "far beyond human” …

Artificial Intelligence: The greatest value creation engine

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Artificial Intelligence: A brief history

1989 1992 1997 201620142011

Bill

Othello

Deep Blue AlphaGo

2007

SPHINX IBM

Watson

Apple

Siri

1994

Nuance

2012

Chinook

Checkers

1988

Facebook

DeepFace

Microsoft

TayLoebner

Prize

Claudico

Texas Hold’em

2015

Google

Brain

2000 2013

DQN

Xbox

Kinect

Google

Now

Microsoft

Cortana

Palantir

MetropolisWealthfront

Betterment

Google

AdWords

Kensho Google Auto-

EmailMS Office

Grammar

2012

CMU Boss Boston

DynamicsGoogle CarPepperAmazon Kiva

Ga

min

gP

erceptio

nD

ecision

Feed

ba

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But timing matters…

1989 1992 1997 201620142011

Bill

Othello

Deep Blue AlphaGo

2007

SPHINX IBM

Watson

Apple

Siri

1994

Nuance

2012

Chinook

Checkers

1988

Facebook

DeepFace

Microsoft

TayLoebner

Prize

Claudico

Texas Hold’em

2015

Google

Brain

2000 2013

DQN

Xbox

Kinect

Google

Now

Microsoft

Cortana

Palantir

MetropolisWealthfront

Betterment

Google

AdWords

Kensho Google Auto-

EmailMS Office

Grammar

2012

CMU Boss Boston

DynamicsGoogle CarPepperAmazon Kiva

The PC era The Internet era The Mobile Internet era The AI era

YOU

Bill Gates

Born in 1955

Steve Jobs

Born in 1955

Jeff Bezos

Born in 1964

Jerry Yang

Born in 1968

Kevin Systrom

Born in 1983

Evan Spiegel

Born in 1990

The AI era is YOURS

Deep Learning’s advantages:

• More web layers

• fast learning of abstract concepts

• self-learning

• accelerating convergence

Deep Learning: The biggest breakthrough in recent years

70%

75%

80%

85%

90%

95%

100%

2011 2012 2013 2014 2015 2016

Human eye

Deep learning

Medical Science: Automated reading, automated

and auxiliary diagnosis,

personalized diagnosis, gene

sequencing

Education:

Learning a foreign language,

smart learning sequencing

Banking and insurance

applications: Targeted marketing, loan approval,

credit card fraud prevention

Recognition:

Voice, face, video content

applications: security,

customer service.....

Investment: AI+high frequency trading,

prediction engine (Bloomberg

replacement)

Internet data: Purchase conversion,

recommendation, pricing,

targeting, SNS marketing

BI、Business process

automation

Greatest single

opportunity:

Autonomous

vehicles

(tech. applicable

to many areas)

Deep Learning: Exceeding humans & creating value

Google Alphabet: World’s most ambitious AI Platform

Deep Learning: Rapid adoption inside Google

Deep

Learning:

Learning from

Massive data

Reinforcement

Learning:

Auto-

Learning

Transfer

Learning:

Solve sparse-

data problem

Today Future

Machine Learning: Only the beginning….

Credit to: Prof. Yang Qiang, HKUST

Scientist Question #1: When will AI work?

Five conditions

of AI

Clear boundaries

Auto-collected feedback

loop

Computing resources

Big data(ideally closed-loop)

Top data scientists

Credit to: Prof. Yang Qiang, HKUST

1 2

3 4

Own end-to-end data

Hire best scientists

Buy hardware optimized for AI

$100,000,000 $400,000,000

Train young people in “AI alchemy”

Scientist Question #2: How to profit from AI?

1 2

3 4

Assist and not replace people

“Trick”users to provide data

“Error-tolerant”user interface

Constrained application scenario

“无人驾驶”

Scientist Question #3: How to succeed despite AI imperfections?

Scientist Question #4: Best AI founder = ?

The Internet era The App era The O2O era The AI era

US Returnee

Product manager

On-the-Ground Sales

+

Back-end Technologist

AI Scientist

+

Enterprise Sales Leader

YOU

L1:

(AI as input to

humans)

Vision

VoiceLanguage

Gesture

Industrial

Robots

Househol

d Robots

Big Data Perception RoboticsAutonomous

Driving

Sta

ge

3 –

5 y

r5

–1

0 y

r1

0 y

r+

InternetApplication

All-terrain fully

autonomousdri

ving

L2-3:

(AI assisting

human driver)

AR/VR &

New natural

interface

Com-

mercial

Robots

Cross-domain and general

natural language understanding

L4

(Human assisting

AI)

Investment

Insurance

Banking

Healthcare

Education

Any industry with

big data

Artificial intelligence + computing architecture

+ algorithm framework + sensing platform

BI、Business

process

automation

Mass

produced

sensors

Sinovation Ventures AI roadmap

Understanding

Expensive sensors:

Infrared, depth

camera,

Gyroscope,

Lidar…

Attract top tech talents

Collect cross-

cutting big data

Build up a platform

and create a cluster

(2) Series A+B VC

Sinovation Ventures AI Strategy

Top engineers

Explore

collaboration with

industry leaders

Look for the

best AI

opportunities

(1) Early stage incubation:

AI Institute

Sinovation Ventures: $675M duo-fund just raised

USD Fund III

300M USD

RMB Fund II

2.5B RMB

39%

22%

32%

5%

2%

Type of LPs

大学基金会和退休基金 家族办公室和捐赠基金 上市公司

主权基金 美元母基金

University funds

& pension funds

Family offices &

endowment funds

59%

10%

20%

11%

Type of LPs

高净值个人及财富管理机构 上市公司

政府引导资金 人民币母基金

Sovereignty funds USD FOFs

Public companies

Public companiesWealth mgmt. institutions

RMB FOFsGov’t guidance funds

The most complete AI research and

blueprint in industry.• Include detailed predictions and

methodology.

Sinovation Ventures AI portfolio

Series A+B VC

The most important investment area

for Sinovation Ventures.• 25 portfolio companies in total.

• 75% in China, 25% in the U.S.

• Total investments in AI > US$100M.

Sinovation Ventures raised new

capital in preparation.• Total AUM: US$1.2B.

Provide comprehensive help to

portfolio companies.• Cooperation both at home and abroad.

• Industry analysis and insights.

• Global & campus recruitment.

• ImageNet World Champion.

• FaceID having been called

over 2 billion times.

• Leader in China’s unmanned

driving.

• Founded by former head of

Intel China Research Institute.

• Preparing for going public on the

Hong Kong stock market.

• Covering 1.1 billion devices

globally.

• ACM world champion.

• Founded by Baidu's youngest

scientist.

• Gathered industry’s top AI experts.输入内容

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• Innovated K12 English

textbooks in China.

• Product used in > 10,000

schools nationwide.

• Founded by former head

of Baidu IDL.

• A rising star for both

capital & talents.

输入内容

The world's fastest

developing K12

programming toy robot

Compact, low-power, high-

resolution computer vision

processor.

• Industry leader in video

conference.

• Defined the family-

accompanying robot.

• Work with first-class

researchers & scientists.

• Artificial Intelligence +

General Robots.

Sinovation Ventures’ top AI portfolio with campus recruitment

Attract top tech talents

Collect cross-cutting

big data

Build up a platform

and create a cluster

Top engineers

Explore collaboration

with industry leaders

Look for the best

AI opportunities

• Top tech talents / EIR

• Most promising

young engineers

• Industry experience

from Sinovation Ventures

Sinovation Ventures: AI Institute ($60M funding just raised)

• Example I：• >20000 Google citations• Top scientist from academia• Breakthrough AI application in robotics

• Example 2:• Key technical position at 3 US & China giants• Access to exclusive big data access• Develop specific industry application

• Example 3:• Director at top company• Experience in NL/speech and deep learning• Planning unique consumer product/experience

Sinovation Ventures Technical EIRs

Jiaping Wang – Senior AdvisorYonggang Wang - VP of AI Institute

Qin Liu - Senior Expert

Yonggang was a Staff Engineer and Senior Manager at Google where he was responsible for Desktop Search, Product Search, Knowledge Graph, and Pinyin input methods. Prior to that, he was a Technical Director at 任方正奥德 building wide range of financial software products. Yonggang is a graduate of Beijing University.

Jiaping was a Lead Researcher and Team Lead at Microsoft Research (Seattle). He has published in SIGGRAPH multiple times and hold more than 10 patents. He also has full-stack experience in recommendation systems, P2P networks, quantitative trading, HPC, and GPU Computing. Jiapingreceived his PhD from Chinese Academy of Sciences where he won the best dissertation in China (“Data-Driven Appearance Modeling”)

Qin was previously an engineer at Google. He has extensive experience in automated testing of optical equipments and wireless networking. Since leaving Google in 2009, he ran a successful quantitative hedge fund. Qin received his BS from University of Waterloo and MS from University of Toronto.

Sinovation Ventures AI In-house experts

Sinovation Ventures & portfolio companies recognized as AI leaders

Contact: kfl@chuangxin.com