Xiao-I Corporation (NASDAQ:AIXI) has recently announced the launch of its advanced Large Language Model (LLM) called Hua Zang (华藏). This model, developed by a team of 200 engineers, utilizes proprietary algorithms and leverages independently collected, acquired, and aggregated data by Xiao-I. Hua Zang has wide-ranging applications across various sectors including finance, government, healthcare, construction, energy, telecommunications, education, e-commerce, logistics, travel and tourism, media, manufacturing, automotive, pharmaceuticals, judiciary, and retail.
During the launch event, the company outlined its 12-month milestones, which include developing a brand-new business ecosystem within three months, completing language coverage and introducing international market applications within six months, and disrupting traditional business models by providing an open source platform within a global business ecosystem within 12 months.
Since going public on March 9, 2023, AIXI’s stock performance has remained steady, trading slightly below its IPO price. However, with the launch of the LLM, the average daily trading volume has tripled to 941k, generating excitement among investors.
In terms of future growth, AIXI has two main revenue streams: model-based cloud platform products and technology development services. With China’s AI market predicted to reach a value of $27 billion by 2026, representing 8.9% of worldwide investment, and AI use cases estimated to create $600 billion in economic value annually by 2030, AIXI is well-positioned to capitalize on this growth. Under a base scenario, AIXI’s revenue could reach $123MM to $264MM by FY26 and close to $1B by FY30.
In an upside scenario, AIXI aims to replicate the success of OpenAI, which projects revenue of $200MM in 2023 and $1B in 2024. If AIXI follows a similar growth trajectory, its financials would be even more promising.
Currently traded at 8.7x P/LTM Sales, AIXI’s stock has the potential for a 47% upside from its current price if it aligns with industry comparisons. The company’s launch of the Hua Zang LLM marks a significant milestone in its 12-month business roadmap, which includes expanding into international markets and introducing an open source platform. With a strong R&D team, partnerships with top universities, and a presence in various fields, AIXI is well-prepared to build a global business ecosystem.
While there are investment risks, such as the need to deliver exceptional products in a competitive market and manage the costs of R&D and infrastructure, AIXI’s strong foundation and ambitious goals position it favorably for future success.
Overall, AIXI’s launch of the Hua Zang LLM represents a significant step towards achieving its vision of building a Chinese version of ChatGPT. With its market potential, growth trajectory, and strategic roadmap, AIXI is poised to make waves in the AI industry.
