SoundHound AI CEO talks Nvidia's $3.7 million investment

CNBC Television
21 Feb 202404:56

TLDRNVIDIA's significant $3.7 million investment in SoundHound AI has led to a surge in the latter's stock value, more than doubling in February. The collaboration highlights SoundHound's use of NVIDIA's AI infrastructure for its voice and conversational AI technologies. Despite a dramatic increase in trading volume prior to the announcement, raising potential regulatory concerns, SoundHound's CEO remains focused on long-term value creation and assures that their AI technology has significantly improved in accuracy and user preference.

Takeaways

  • 📈NVIDIA's AI event on March 19th is anticipated to positively impact its shares.
  • 💰NVIDIA has invested $3.7 million in SoundHound AI, whose shares doubled in February.
  • 🤖SoundHound AI specializes in voice AI and conversational AI technology, utilizing NVIDIA's AI infrastructure.
  • 🗣️The CEO of SoundHound AI emphasizes the company's focus on long-term value creation and recognition in the industry.
  • 🤔The investment by NVIDIA came about due to their mutual history and shared vision in AI development.
  • 💼SoundHound AI is a public company experiencing significant growth over the past four years.
  • 📊There was a spike in trading volume for SoundHound AI's stock prior to the NVIDIA investment announcement.
  • 🚨The trading volume spike has not raised concerns for SoundHound AI, nor has there been contact from the Securities and Exchange Commission.
  • 📞SoundHound AI's products are used in customer service and voice-activated commands for home and automotive devices.
  • 🌐AI customer service is predicted to become as essential as Wi-Fi and electricity for businesses.
  • 🗣️People are expected to prefer talking to devices over other people due to the convenience and improving accuracy of voice AI.

Q & A

  • When is NVIDIA's next big AI event?

    -NVIDIA's next big AI event is on March 19th.

  • How has NVIDIA's share price historically reacted to its AI events?

    -NVIDIA's share price tends to move up around its AI events.

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

    -The $3.7 million stake by NVIDIA in SoundHound AI is a strategic investment that reflects NVIDIA's recognition of SoundHound's effective use of AI infrastructure for voice and conversational AI technologies.

  • How has SoundHound AI's stock performance been in recent months?

    -SoundHound AI's shares have more than doubled in the month of February.

  • What is SoundHound AI's focus in terms of business strategy?

    -SoundHound AI is focused on long-term value creation and ensuring that they receive the recognition they deserve in the AI space.

  • How did the partnership between NVIDIA and SoundHound AI come about?

    -The partnership developed over years of knowing each other, with NVIDIA building the foundation and infrastructure for AI, and SoundHound utilizing this infrastructure for their voice and conversational AI technology.

  • What does SoundHound AI plan to do with the $3.7 million investment from NVIDIA?

    -SoundHound AI, being a public company, is in a quiet period and cannot comment on specific financial plans, but they have experienced sustained growth over the last four years.

  • What is the nature of SoundHound AI's business?

    -SoundHound AI operates in two main areas: enhancing customer service through voice recognition for automated ordering systems, and enabling voice control for appliances and vehicles in homes and cars.

  • How does SoundHound AI's technology differ from other voice AI assistants like Siri or Alexa?

    -SoundHound AI aims to improve the accuracy and quality of voice AI, suggesting that people prefer voice interaction if it works effectively.

  • What is SoundHound AI's prediction for the future of AI in customer service?

    -SoundHound AI predicts that AI customer service will become as essential for businesses as Wi-Fi and electricity, signifying a preference for talking to devices over other people in certain contexts.

  • Was there any unusual trading activity in SoundHound AI's stock prior to the announcement of NVIDIA's stake?

    -Yes, trading volume increased dramatically in the days before the announcement, with volumes reaching $64 million on February 7th and 8th, compared to an average volume of $2.7 million.

  • Has SoundHound AI been in contact with the Securities and Exchange Commission regarding the trading volume spike?

    -No, SoundHound AI has not had any contact with the Securities and Exchange Commission about the spike in trading volume.

Outlines

00:00

📈 NVIDIA's Investment in SoundHound AI

The paragraph discusses NVIDIA's significant investment in SoundHound AI, a company specializing in voice and conversational AI technology. NVIDIA has taken a $3.7 million stake in SoundHound, which has led to a doubling of SoundHound's shares in the month of February. The CEO of SoundHound AI is interviewed, highlighting the company's focus on long-term value creation and the recognition it has received. The CEO explains that NVIDIA, known for its foundational and infrastructure contributions to AI, has known SoundHound for years, and their technology complements NVIDIA's by utilizing the infrastructure for their AI services. The conversation also touches on the financial growth of SoundHound over the past four years and the increase in trading volume prior to the announcement of NVIDIA's investment, which raised some concerns but did not lead to contact from the Securities and Exchange Commission. The paragraph concludes with a discussion on SoundHound's applications in customer service through automated ordering systems and the prediction that AI customer service will become as essential as Wi-Fi and electricity for businesses.

Mindmap

Keywords

💡NVIDIA

NVIDIA is a multinational technology company known for its graphics processing units (GPUs) for gaming and professional markets, as well as its system on a chip units for the mobile computing and automotive markets. In the context of this video, NVIDIA's involvement is significant due to its strategic investment in SoundHound AI. This partnership indicates NVIDIA's broader interest and stake in AI technologies, leveraging its strong foundation and infrastructure in AI to support and enhance SoundHound's conversational AI and voice recognition capabilities.

💡SoundHound AI

SoundHound AI is a company specializing in voice-enabled AI and conversational intelligence technologies. The video highlights SoundHound's collaboration with NVIDIA and the resulting financial and strategic benefits. SoundHound's technology allows users to interact with devices and services through voice commands, indicating a significant advancement in how AI can be integrated into daily life and customer service, as exemplified by the mention of voice ordering at food establishments and in-car commands.

💡Stake

In the context of this video, a 'stake' refers to NVIDIA's investment in SoundHound AI, amounting to $3.7 million. This financial involvement not only provides capital to SoundHound AI but also signifies NVIDIA's support and belief in SoundHound's technology and future potential. This stake is a strategic move that could influence both companies' positions in the AI market.

💡Voice AI

Voice AI, or voice-activated artificial intelligence, is a key area of focus for SoundHound AI, as mentioned in the video. This technology enables machines to understand and respond to human voice commands, making interactions with technology more intuitive and natural. SoundHound AI's development in this area, supported by NVIDIA's infrastructure, represents a significant push towards more interactive and accessible AI applications in consumer and automotive industries.

💡Conversational AI

Conversational AI refers to technologies that allow users to communicate with applications, systems, or devices in natural language. The script highlights SoundHound AI's expertise in this field, emphasizing the potential of conversational AI to revolutionize customer service and device interaction. Through conversational AI, businesses can automate responses and services, enhancing efficiency and user experience.

💡Trading volume

Trading volume is mentioned in the context of an unusual increase in SoundHound's stock transactions prior to the public announcement of NVIDIA's investment. This surge in trading volume could indicate insider trading or speculative trading based on non-public information, raising concerns about legal and regulatory implications, such as potential investigation by the Securities and Exchange Commission (SEC).

💡SEC (Securities and Exchange Commission)

The SEC is a U.S. federal agency responsible for enforcing federal securities laws and regulating the securities industry. The video mentions the SEC in the context of potential regulatory scrutiny over the unusual spike in SoundHound's trading volume before the announcement of NVIDIA's stake. This scenario suggests the importance of transparency and legal compliance in financial transactions and corporate announcements.

💡Customer Service AI

Customer Service AI is discussed as one of the application areas for SoundHound AI's technology, indicating the use of AI to automate and enhance customer service experiences. Examples given in the video, such as voice-activated ordering at restaurants, demonstrate how AI can streamline operations and offer convenience to consumers, marking a significant shift in how businesses interact with their customers.

💡Automotive integration

Automotive integration refers to the application of SoundHound AI's voice and conversational technologies in vehicles, enabling drivers to control features and access information through voice commands. This integration points to the broader trend of smart technology adoption in the automotive industry, enhancing safety, convenience, and the overall driving experience.

💡AI growth

AI growth is mentioned in the context of SoundHound AI's sustained development over the past four years. This growth reflects the increasing adoption and integration of AI technologies across various industries. SoundHound AI's success and expansion, underscored by NVIDIA's investment, illustrate the significant potential and demand for AI solutions that enhance human-machine interactions.

Highlights

NVIDIA is hosting a major AI event on March 19th, with shares expected to rise due to the event.

NVIDIA has invested $3.7 million in SoundHound AI, a company specializing in voice and conversational AI technologies.

SoundHound AI's shares have more than doubled in the month of February.

The CEO of SoundHound AI emphasizes the company's focus on long-term value creation and the recognition they deserve.

NVIDIA and SoundHound AI have known each other for years, with NVIDIA building AI infrastructure that SoundHound utilizes effectively.

The $3.7 million investment, while substantial, is relatively small in the grand scheme of things, prompting questions on how SoundHound will use it to strengthen their business.

SoundHound AI has experienced significant and sustained growth over the last four years.

There were reports of increased trading volume in SoundHound AI's stock prior to the announcement of NVIDIA's stake, raising potential regulatory concerns.

The CEO of SoundHound AI downplays the trading volume spike, comparing it to other AI companies not in NVIDIA's portfolio.

SoundHound AI's products are primarily focused on customer service and voice-activated commands in various settings, such as fast food chains and home appliances.

The CEO predicts that AI customer service will become as essential as Wi-Fi and electricity for businesses.

SoundHound AI aims to improve the accuracy and user-friendliness of voice-activated commands, with the belief that people will prefer talking to devices over others if the technology works well.

The quality of voice AI has improved significantly, leading to higher user preference for voice commands if they are effective.

The CEO's three-year-old daughter is an example of the new generation that intuitively interacts with smart devices through voice commands.

SoundHound AI's technology is designed to recognize and respond accurately to complex voice commands, such as ordering specific items at fast food restaurants.

The CEO expresses confidence in the advancements in voice AI, suggesting that current systems like Siri and Alexa often fail to understand commands correctly.

SoundHound AI's investment from NVIDIA is seen as a strategic move to leverage the infrastructure and foundation that NVIDIA has built for AI.

The CEO does not express concern over the trading volume spike, indicating no contact with the Securities and Exchange Commission regarding the matter.

The interview highlights the growing importance and integration of AI in everyday life, from ordering food to controlling home appliances.

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