SoundHound AI CEO talks Nvidia's $3.7 million investment

CNBC Television
21 Feb 202404:56

TLDRThe CEO of SoundHound AI discusses the company's recent $3.7 million investment from Nvidia, which has led to a significant increase in SoundHound's shares. The CEO emphasizes the company's focus on long-term value creation and their use of Nvidia's AI infrastructure to enhance their voice and conversational AI technology. The discussion also touches on the potential increase in trading volume prior to the announcement, which could raise concerns with regulatory bodies. SoundHound AI's applications are highlighted, including automated customer service in establishments like Dunkin' Donuts and voice-activated control in vehicles and homes. The CEO is optimistic about the future of AI, predicting that AI customer service will become as essential as Wi-Fi and electricity, and that people will increasingly prefer interacting with devices over other humans.

Takeaways

  • 📈 NVIDIA has invested $3.7 million in SoundHound AI, which has led to a significant increase in SoundHound's share value.
  • 🤝 SoundHound AI and NVIDIA have had a long-standing relationship, with NVIDIA providing the AI infrastructure that SoundHound utilizes for its voice and conversational AI technologies.
  • 💡 SoundHound AI's CEO emphasizes the company's focus on long-term value creation and acknowledges the recognition they have received from the investment.
  • 🚫 The CEO could not comment on financial matters due to a quiet period, but highlighted the company's sustained growth over the past four years.
  • 🔍 There was a dramatic increase in trading volume for SoundHound's stock prior to the announcement of NVIDIA's investment, which could potentially attract regulatory scrutiny.
  • 🧐 The CEO dismissed concerns about the trading volume spike, suggesting it was more speculation and noting similar experiences with other AI companies not in NVIDIA's portfolio.
  • 👮 No contact has been reported between the Securities and Exchange Commission and SoundHound regarding the trading volume spike.
  • 📱 SoundHound AI's technology is used in customer service, such as automated ordering systems at fast-food chains, and in home and automotive applications for controlling devices with voice commands.
  • 🌟 The CEO predicts that AI customer service will become as essential for businesses as Wi-Fi and electricity, and that people will prefer interacting with devices over other people in the future.
  • 🧐 The CEO acknowledges the common frustration with voice recognition systems not understanding commands correctly, but asserts that the quality has improved significantly.
  • 👧 The CEO shares a personal anecdote about their three-year-old daughter being able to communicate with devices, illustrating the growing ease and adoption of voice technology.

Q & A

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

    -The investment signifies NVIDIA's recognition of SoundHound A.I.'s potential and the synergy between their AI infrastructure and SoundHound's voice and conversational AI technology. It also led to a significant increase in SoundHound's share value.

  • How does SoundHound A.I. utilize NVIDIA's AI infrastructure?

    -SoundHound A.I. leverages NVIDIA's infrastructure to enhance its voice and conversational AI technology, which is then applied in various sectors such as customer service and smart home devices.

  • What was the CEO of SoundHound A.I.'s reaction to the investment and the share price increase?

    -The CEO expressed that while they are focused on long-term value creation, it is right to have the recognition that they deserve. The share price increase was seen as a positive sign but the CEO emphasized their focus on sustainable growth.

  • How did the collaboration between NVIDIA and SoundHound A.I. come about?

    -The collaboration has been a result of a relationship built over years. NVIDIA, known for building AI infrastructure, found a valuable application of their technology in SoundHound's voice and conversational AI systems.

  • What is the CEO's stance on the increased trading volume prior to the announcement of NVIDIA's investment?

    -The CEO did not express any concern regarding the increased trading volume, suggesting it was more a result of speculation and noting that other AI companies experienced similar trading activity.

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

    -No contact has been reported between the CEO and the Securities and Exchange Commission regarding the spike in trading volume.

  • What are the two main areas of application for SoundHound A.I.'s technology?

    -SoundHound A.I.'s technology is primarily applied in customer service through automated ordering systems in establishments like Dunkin' Donuts and in smart home and automotive systems that respond to voice commands.

  • How does SoundHound A.I.'s technology differ from other voice-activated systems like Siri or Alexa?

    -SoundHound A.I. focuses on providing higher quality and more accurate voice recognition, which leads to a better user experience and preference for voice interactions when the technology works effectively.

  • 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 a future where talking to devices becomes more common than interacting with people.

  • What is the CEO's response to concerns about voice recognition systems not understanding commands correctly?

    -The CEO acknowledges the past issues but asserts that the quality of voice recognition has significantly improved, and people are more inclined to use voice commands when they work accurately.

  • How does SoundHound A.I. plan to use the $3.7 million investment to strengthen its business?

    -While the CEO did not provide specific details due to a quiet period, they mentioned that the company has experienced incredible growth over the last four years, indicating a strategic use of funds to continue this growth trajectory.

  • What is the potential impact of NVIDIA's investment on SoundHound A.I.'s public image and credibility?

    -The investment from a renowned chip giant like NVIDIA enhances SoundHound A.I.'s credibility and public image, showcasing their technology as a valuable and recognized player in the AI industry.

Outlines

00:00

📈 NVIDIA's Impact on SoundHound A.I.'s Stock Performance

The video discusses NVIDIA's upcoming event on March 19th, which typically influences a positive stock movement. Christina thanks the speaker and inquires about NVIDIA's investment strategy, highlighting their recent $3.7 million stake in SoundHound A.I., which has led to a significant increase in SoundHound's shares. The CEO of SoundHound A.I. expresses satisfaction with the recognition, explaining that NVIDIA has been a known entity for years and that their AI infrastructure complements SoundHound's voice and conversational AI technology. The CEO also addresses the financial growth over the past four years and the quiet period that prevents further comment. The conversation touches on the increased trading volume prior to the announcement of NVIDIA's investment, which could raise concerns with the Securities and Exchange Commission, but the CEO dismisses it as speculation and compares it to other AI companies not in NVIDIA's portfolio. The video concludes with a brief mention of SoundHound's products, focusing on customer service through voice recognition in various settings like food chains and home appliances.

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. This investment is seen as a vote of confidence in SoundHound'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 technology. In the video, the CEO of SoundHound AI discusses the company's recognition and growth, as well as their partnership with NVIDIA, which has led to a substantial investment and a surge in their share value.

💡Investment

An investment in this context refers to the $3.7 million stake that NVIDIA has taken in SoundHound AI. Investments of this nature are strategic and indicate a belief in the future potential of the invested company. The investment is significant for SoundHound AI as it not only provides financial support but also adds credibility and opens up opportunities for further growth.

💡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, AI is central to both NVIDIA's and SoundHound AI's operations. NVIDIA provides the foundational infrastructure for AI, while SoundHound AI utilizes this infrastructure to develop its voice and conversational AI technologies.

💡Voice AI

Voice AI is a branch of artificial intelligence that focuses on the interaction between humans and machines using voice commands. SoundHound AI specializes in Voice AI, which allows for hands-free interaction with devices and services. In the transcript, Voice AI is mentioned in relation to automated ordering systems in customer service, such as those at Dunkin' Donuts or Krispy Kreme.

💡Conversational AI

Conversational AI is a type of AI designed to enable natural, human-like interactions between users and digital devices. SoundHound AI's technology is highlighted for its advancements in this area, which allows for more effective communication between humans and machines, such as controlling appliances or vehicles through voice commands.

💡Customer Service

Customer service, as discussed in the video, is one of the key areas where SoundHound AI's technology is applied. The use of automated ordering systems that recognize voice commands in establishments like Dunkin' Donuts or Krispy Kreme is an example of how AI can enhance customer service by providing a more convenient and personalized experience.

💡Trading Volume

Trading volume refers to the number of shares traded in a security during a given period. In the context of the video, there is a mention of a dramatic increase in trading volume for SoundHound AI's shares prior to the announcement of NVIDIA's investment. This increase in trading activity 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 in the United States. The video script mentions the possibility that the significant increase in trading volume prior to the NVIDIA investment announcement could attract the attention of the SEC, as unusual trading activity can sometimes be a sign of insider trading or other regulatory concerns.

💡Infrastructure

In the context of the video, infrastructure refers to the foundational technology and systems that support the operation of advanced technologies like AI. NVIDIA is described as building the infrastructure for AI, which SoundHound AI then utilizes to develop its voice and conversational AI technologies.

💡Public Company

A public company is a corporation that has issued shares that are traded on a stock exchange, allowing investors to buy and sell ownership in the company. SoundHound AI is mentioned as a public company, which implies that it has undergone an initial public offering (IPO) and is subject to the reporting and disclosure requirements of being publicly traded.

Highlights

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

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.

Nvidia is building the foundation and infrastructure for AI, which SoundHound utilizes in its technology.

SoundHound AI has experienced incredible growth over the last four years.

There was a dramatic increase in trading volume for SoundHound AI's stock prior to the announcement of Nvidia's investment.

The CEO downplays concerns about the trading volume spike, comparing it to the behavior of other AI companies not in Nvidia's portfolio.

SoundHound AI's technology is used in customer service, such as automated ordering systems at Dunkin' Donuts, Krispy Kreme, and Jersey Mike's.

The technology also enables voice commands for home appliances and car systems.

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

SoundHound AI aims to improve voice recognition accuracy, with the CEO noting that people prefer voice interactions when they work well.

The CEO mentions that even his three-year-old daughter knows how to interact with voice-activated devices.

SoundHound AI's technology is designed to understand and process complex voice commands more effectively than current solutions.

The company is in a quiet period and cannot comment on many financial details.

The CEO does not confirm any contact with the Securities and Exchange Commission regarding the trading volume spike.

Nvidia's AI event on March 19th is anticipated to positively impact its shares.

The interview discusses the potential for increased speculation and investment in AI companies.

SoundHound AI is positioning itself as a key player in the future of voice and conversational AI.

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