AI giant iFlytek to invest HK$400 million in Hong Kong, opens international headquarters

One of China's original artificial intelligence (AI) champions, iFlytek, on Friday unveiled a five-year, HK$400 million (US$51.2 million) investment plan in Hong Kong, where the company has opened its international headquarters.

Shenzhen-listed iFlytek, known for its voice-recognition technology, and subsidiary Xunfei Healthcare have moved into their new offices in Cyberport, the Hong Kong government-backed technology hub in the city's Southern district.

The company said the investment plan will support its creation of a 150-member research and development team, which will focus on the development of large language models (LLMs), as well AI applications in intelligent speech, education and healthcare. LLMs are the technology underpinning generative AI services like ChatGPT.

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"Our initial budget is HK$400 million," iFlytek senior vice-president Duan Dawei told the South China Morning Post at the opening ceremony of the new premises on Friday. "If everything goes well [in Hong Kong], that figure is going to be more."

Duan Dawei, senior vice-president at iFlyTek, speaks at the opening ceremony of the firm's international headquarters in Cyberport on Friday. Photo: Handout alt=Duan Dawei, senior vice-president at iFlyTek, speaks at the opening ceremony of the firm's international headquarters in Cyberport on Friday. Photo: Handout>

With the firm's new international headquarters, Duan said iFlytek intends to expand the market for its flagship Spark LLM and voice-recognition tools to various enterprises in the city and local consumers.

Founded about 25 years ago in Hefei, capital of eastern Anhui province, iFlytek also plans to collaborate with local companies, such as those in the education and healthcare sectors, in developing computing infrastructure and using its LLM to build custom AI applications, according to Duan.

He added that Hong Kong's Legislative Council has already adopted iFlytek's real-time, voice-to-text tools for meetings.

Hong Kong will also serve as iFlytek's launch pad to expand the overseas reach of its intelligent education hardware and services, with a focus on the Middle East and Southeast Asia, Duan said.

The move by iFlytek bolsters the Hong Kong government's efforts to establish the city as a tech innovation hub.

In August 2023, Hong Kong Chief Executive John Lee Ka-chiu committed to establishing a cross-border science and technology hub by 2035, emphasising the city's role as a bridge between the mainland and the rest of the world.

"The government has always strongly supported the development of innovation and technology in Hong Kong, with a key focus on AI and life and health technology," Sun Dong, the city's Secretary for Innovation, Technology and Industry, said at the opening ceremony at Cyberport.

Sun Dong, Hong Kong's Secretary for Innovation, Technology and Industry, welcomes iFlytek at the opening ceremony of the firm's international headquarters at Cyberport. Photo: Handout alt=Sun Dong, Hong Kong's Secretary for Innovation, Technology and Industry, welcomes iFlytek at the opening ceremony of the firm's international headquarters at Cyberport. Photo: Handout>

Despite being added to Washington's trade blacklist in 2019, iFlytek's operations have continued to thrive, while sharpening its focus on major AI initiatives.

Last month, iFlytek revealed that its LLMs were trained completely on a domestic computing platform that it co-developed with Huawei Technologies, pushing forward China's goal of tech self-sufficiency to overcome US restrictions.

"Cyberport is building an AI ecosystem, including a supercomputing centre," Rocky Cheng, chief executive at Cyberport told the Post, on Friday. He said iFlytek will be involved in that development, even as discussions have started with Baidu.

Xunfei Healthcare, meanwhile, plans to set up an international research institute that integrates health technology and AI. In January, iFlytek revealed plans for an initial public offering of its healthcare unit in Hong Kong.

This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2024 South China Morning Post Publishers Ltd. All rights reserved.

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