Publicly traded Chinese gaming company Beijing Kunlun Technology Co. Ltd.announced on Wednesday a $3 million USD investment in Kunlun AI, a new company jointly established by Kunlun Tech’s Hong Kong subsidiary and a few undisclosed partners. Kunlun Tech will own a 15 percent stake in the new company.
Based in Palo Alto, Calif., Kunlun AI will develop big data and AI-driven corporate solutions in advertising, content recommendations, security, marketing, finance, and speech recognition, according to a press release. The company also claims to have pulled hires from well-known tech giants like Facebook, Dropbox, Pinterest, and Baidu.
“Our work in artificial intelligence is a long-term investment,” says Sophie Chen, a spokesperson from Kunlun Tech. “To put it into perspective, we’re investing in the future 10 to 20 years from now. This is not something that will immediately yield profit. As you know, artificial intelligence is still in the basic stages of research and development.”