SoundHound AI CEO talks Nvidia's $3.7 million investment

CNBC Television
21 Feb 202404:56

TLDRNVIDIA has invested $3.7 million in SoundHound AI, a company specializing in voice and conversational AI technology. This investment has led to SoundHound's shares more than doubling in February. The CEO of SoundHound AI discusses the long-term value creation and the recognition the company has received. The collaboration between NVIDIA, which builds AI infrastructure, and SoundHound AI, which utilizes this infrastructure, is highlighted. The CEO also addresses concerns about a significant increase in trading volume prior to the investment announcement, suggesting it was due to market speculation rather than insider trading. SoundHound AI's applications in customer service, such as automated ordering systems in fast food chains and voice-activated commands in homes and vehicles, are mentioned. The CEO believes that AI customer service will become as essential as Wi-Fi and electricity for businesses, and that people will increasingly prefer interacting with devices over humans.

Takeaways

  • 📈 NVIDIA has invested $3.7 million in SoundHound AI, which has led to a significant increase in SoundHound's share value.
  • 🤝 The partnership between NVIDIA and SoundHound AI has been built over years, with NVIDIA providing the AI infrastructure that SoundHound utilizes for its voice and conversational AI technology.
  • 💡 SoundHound AI's CEO emphasizes long-term value creation and acknowledges the recognition they have received from the investment.
  • 🚫 The CEO was unable to comment on financial details due to a quiet period for the public company.
  • 📊 SoundHound AI has experienced sustained growth over the last four years, which the CEO considers 'amazing and incredible'.
  • 🔎 There was a dramatic increase in trading volume prior to the announcement of NVIDIA's investment, raising potential concerns about insider trading.
  • 🧐 The CEO dismissed concerns over the trading volume spike, comparing it to the experiences of other AI companies not in NVIDIA's portfolio.
  • 🙅‍♂️ The CEO stated that there has been no contact with the Securities and Exchange Commission regarding the trading volume spike.
  • 📞 SoundHound AI's technology is used in customer service, including automated ordering systems in restaurants like Dunkin' Donuts and Jersey Mike's.
  • 🏠 The technology also enables users to control appliances and cars through voice commands in their homes and vehicles.
  • 🌟 The CEO predicts that AI customer service will become as essential as Wi-Fi and electricity for businesses, and that people will prefer talking to devices over other people in the future.

Q & A

  • What is the significance of NVIDIA's $3.7 million investment in SoundHound AI?

    -The investment signifies NVIDIA's recognition of SoundHound AI's potential and the value of their voice AI and conversational AI technology. It also indicates a strategic partnership where SoundHound AI can leverage NVIDIA's AI infrastructure to enhance their services.

  • How does the CEO of SoundHound AI feel about the company's stock performance?

    -The CEO acknowledges the stock's performance and appreciates the recognition that SoundHound AI deserves. However, he emphasizes a focus on long-term value creation for the company.

  • What is the background of the partnership between NVIDIA and SoundHound AI?

    -The two companies have known each other for years. NVIDIA is known for building the foundation and infrastructure for AI, while SoundHound AI is utilizing that infrastructure to develop their voice AI technology.

  • How does the CEO respond to the question about the trading volume spike before the announcement of NVIDIA's investment?

    -The CEO does not express concern over the trading volume spike, suggesting it is more set for speculation and noting that other AI companies not in NVIDIA's portfolio experienced similar increases in trading volume.

  • Has there been any contact with the Securities and Exchange Commission regarding the trading volume spike?

    -No contact has been made or received from the Securities and Exchange Commission regarding the matter.

  • What are the two main areas of application for SoundHound AI's technology?

    -SoundHound AI's technology is primarily applied in customer service and in enabling voice-activated commands in various devices, such as those found in the automotive and home appliance industries.

  • How does SoundHound AI's technology work in the context of customer service?

    -The technology allows for automated ordering systems that recognize voice commands, enabling customers to place orders at establishments like Dunkin' Donuts or Krispy Kreme using voice recognition.

  • What is the CEO's vision for the future of AI customer service?

    -The CEO envisions AI customer service to become as essential as Wi-Fi and electricity for businesses, suggesting that it will be a standard utility that businesses will sign up for.

  • What is the second prediction the CEO makes about the future of AI?

    -The CEO predicts that people will prefer talking to devices rather than other people, indicating a shift towards more interaction with AI-powered systems.

  • How does SoundHound AI address the common issue of voice recognition systems not understanding commands correctly?

    -SoundHound AI has improved the quality of their voice recognition technology, ensuring that it works effectively when used, leading to a preference for voice commands among users.

  • What is the CEO's personal anecdote about the adoption of voice AI technology?

    -The CEO mentions that his three-year-old daughter knows how to speak to and interact with devices like refrigerators and dishwashers, highlighting the increasing normalization of voice AI in everyday life.

Outlines

00:00

📈 NVIDIA's Impact on SOUNDHOUND A.I. Share Prices

The video discusses NVIDIA's upcoming A.I. event on March 19th, which typically influences a positive stock movement. Christina, presumably a financial analyst, thanks the interviewee and introduces the topic of NVIDIA's $3.7 million investment in SOUNDHOUND A.I., which has led to a significant increase in SOUNDHOUND's share prices. The CEO of SOUNDHOUND A.I. is shown expressing satisfaction with the recognition, and the conversation delves into the long-term value creation for the company. The CEO explains that NVIDIA has been a known entity for years, focusing on building A.I. infrastructure, which SOUNDHOUND utilizes effectively with its voice and conversational A.I. technology. Despite the substantial investment, the CEO remains tight-lipped about financial specifics due to a quiet period, but highlights the company's sustained growth over the past four years. The video also touches on a potential increase in trading volume prior to the announcement of NVIDIA's investment, which could raise concerns with the Securities and Exchange Commission (SEC), although the CEO dismisses these concerns by pointing out similar trading patterns in other A.I. companies not part of NVIDIA's portfolio.

Mindmap

Keywords

NVIDIA

NVIDIA is a leading technology company known for its graphics processing units (GPUs) and artificial intelligence (AI) technologies. In the context of the video, NVIDIA has made a significant investment in SoundHound AI, which is a notable event for the company and its stakeholders. The investment signifies NVIDIA's confidence in SoundHound AI's technology and potential for growth.

SoundHound AI

SoundHound AI is a company specializing in voice AI and conversational AI technology. They are focused on creating long-term value through their innovative products. The company's shares have seen a significant increase in value, particularly after the announcement of NVIDIA's investment, which has doubled their shares in the month of February as mentioned in the transcript.

Investment

An investment in the context of the video refers to the financial stake that NVIDIA has taken in SoundHound AI to the tune of $3.7 million. This investment is a sign of NVIDIA's belief in the future prospects of SoundHound AI and is expected to help strengthen SoundHound AI's business.

Artificial Intelligence (AI)

AI refers to the simulation of human intelligence in machines that are programmed to think like humans and mimic their actions. In the video, both NVIDIA and SoundHound AI are working within the AI space, with NVIDIA providing the foundational infrastructure and SoundHound AI utilizing this to develop voice and conversational AI technologies.

Voice AI

Voice AI is a technology that enables interaction between humans and machines using voice commands. SoundHound AI specializes in this area, creating systems that can recognize and respond to voice commands effectively. An example from the transcript is the automated ordering system at fast food chains like Dunkin' Donuts or Krispy Kreme.

Conversational AI

Conversational AI is a branch of AI that focuses on enabling seamless, human-like interactions between people and computers. SoundHound AI's technology in this area is highlighted in the transcript, suggesting that their systems are designed to understand and process natural language, facilitating more natural communication with devices.

Customer Service

Customer service in the context of the video refers to the use of AI technology to improve the customer experience, particularly in automated ordering systems. SoundHound AI's technology is mentioned as being used in this capacity, allowing customers to place orders via voice recognition at various establishments.

Trading Volume

Trading volume refers to the number of shares traded in a security or market during a given period. The transcript discusses a dramatic increase in SoundHound AI's trading volume prior to the announcement of NVIDIA's investment, which could suggest heightened interest or speculation about the company.

Securities and Exchange Commission (SEC)

The SEC is a regulatory body responsible for enforcing securities laws and regulating the securities industry. The transcript mentions the potential for the SEC to take interest in unusual trading activity, such as a significant increase in trading volume before a major announcement, to ensure fair market practices.

Automated Ordering

Automated ordering is a system that allows customers to place orders for goods or services without the need for human interaction. In the video, SoundHound AI's technology is used in this context at various fast food outlets, showcasing the practical application of their voice AI capabilities.

Smart Devices

Smart devices are electronic devices that can connect to the internet and can be controlled remotely or through voice commands. The transcript discusses the use of SoundHound AI's technology in enabling voice control for appliances and cars, indicating a move towards more integrated and interactive smart home and automotive systems.

Highlights

NVIDIA has invested $3.7 million in SoundHound AI, a significant stake that reflects their confidence in the company's technology and potential.

SoundHound AI's shares have more than doubled in the month of February, indicating a strong market response to their business performance and prospects.

The CEO of SoundHound AI emphasizes the company's focus on long-term value creation rather than short-term market fluctuations.

SoundHound AI and NVIDIA have a longstanding relationship, with NVIDIA providing the foundational AI infrastructure that SoundHound utilizes for its voice and conversational AI technologies.

The $3.7 million investment, while substantial, is considered a modest amount by the CEO, who highlights the company's impressive growth over the past four years.

SoundHound AI operates in the public domain and has been observing a quiet period, during which certain financial details cannot be disclosed.

The CEO dismisses concerns about a dramatic increase in trading volume prior to NVIDIA's investment announcement, attributing it to market speculation and similar trends in other AI companies.

SoundHound AI has not received any inquiries from the Securities and Exchange Commission regarding the trading volume spike.

The company's products are primarily focused on customer service, with applications in automated ordering systems for quick service restaurants and voice-activated controls for home and automotive appliances.

SoundHound AI aims to make AI customer service as essential as Wi-Fi and electricity for businesses, highlighting the potential ubiquity of their technology.

The CEO predicts a future where people prefer interacting with devices through voice commands rather than with other people, reflecting a shift towards voice AI technology.

Despite common frustrations with voice recognition accuracy, the CEO of SoundHound AI is confident in the significant improvements in voice AI technology and its user preference when it functions correctly.

The CEO uses the example of his three-year-old daughter's interaction with voice-activated devices to illustrate the natural and intuitive use of voice AI in everyday life.

SoundHound AI's technology is designed to recognize and respond accurately to complex voice commands, such as customized orders at quick service restaurants.

The investment from NVIDIA is seen as a strategic move that aligns with SoundHound AI's mission to leverage advanced AI infrastructure for creating innovative voice and conversational AI solutions.

The CEO's discussion suggests that SoundHound AI is well-positioned to benefit from the growing trend of voice AI technology in customer service and home automation.