1.
The Golden Age of
Artificial Intelligence:
Opportunities for an AI scientist
Dr. Kai-Fu Lee
Chairman and CEO
Sinovation Ventures
October 2016

2.
10 years from now, artificial intelligence will replace 90% of the world’s ...
• Can you play a million Chess games a day, while learning from AlphaGo？
• Absorb the cumulative daily experience of Tesla from a million vehicles?
• Instantly compare all of the world’s airport cameras against all wanted criminals’ faces?
Translation Reporters Assistant Police Taxis
Sales Service Traders Accounting Maids
Artificial intelligence is not just an "imitation of the human", but it usually
goes "far beyond human” …
Artificial Intelligence: The greatest value creation engine

3.
GamingPerceptionDecisionFeedback
Artificial Intelligence: A brief history
1989 1992 1997 201620142011
Bill
Othello
Deep Blue AlphaGo
2007
SPHINX IBM
Watson
Apple
Siri
1994
Nuance
2012
Chinook
Checkers
1988
Facebook
DeepFace
Microsoft
Tay
Loebner
Prize
Claudico
Texas Hold’em
2015
Google
Brain
2000 2013
DQN
Xbox
Kinect
Google
Now
Microsoft
Cortana
Palantir
Metropolis
Wealthfront
Betterment
Google
AdWords
Kensho Google Auto-
Email
MS Office
Grammar
2012
CMU Boss Boston
Dynamics
Google CarPepperAmazon Kiva

4.
GamingPerceptionDecisionFeedback
But timing matters…
1989 1992 1997 201620142011
Bill
Othello
Deep Blue AlphaGo
2007
SPHINX IBM
Watson
Apple
Siri
1994
Nuance
2012
Chinook
Checkers
1988
Facebook
DeepFace
Microsoft
Tay
Loebner
Prize
Claudico
Texas Hold’em
2015
Google
Brain
2000 2013
DQN
Xbox
Kinect
Google
Now
Microsoft
Cortana
Palantir
Metropolis
Wealthfront
Betterment
Google
AdWords
Kensho Google Auto-
Email
MS Office
Grammar
2012
CMU Boss Boston
Dynamics
Google CarPepperAmazon Kiva

5.
The PC era The Internet era The Mobile Internet era The AI era
YOU
Bill Gates
Born in 1955
Steve Jobs
Born in 1955
Jeff Bezos
Born in 1964
Jerry Yang
Born in 1968
Kevin Systrom
Born in 1983
Evan Spiegel
Born in 1990
The AI era is YOURS

6.
Deep Learning’s advantages:
• More web layers
• fast learning of abstract concepts
• self-learning
• accelerating convergence
Deep Learning: The biggest breakthrough in recent years

7.
70%
75%
80%
85%
90%
95%
100%
2011 2012 2013 2014 2015 2016
Human eye
Deep learning
Medical Science:
Automated reading, automated
and auxiliary diagnosis,
personalized diagnosis, gene
sequencing
Education:
Learning a foreign language,
smart learning sequencing
Banking and insurance
applications:
Targeted marketing, loan approval,
credit card fraud prevention
Recognition:
Voice, face, video content
applications: security,
customer service.....
Investment:
AI+high frequency trading,
prediction engine (Bloomberg
replacement)
Internet data:
Purchase conversion,
recommendation, pricing,
targeting, SNS marketing
BI、Business process
automation
Greatest single
opportunity:
Autonomous
vehicles
(tech. applicable
to many areas)
Deep Learning: Exceeding humans & creating value

8.
Google  Alphabet: World’s most ambitious AI Platform

9.
Deep Learning: Rapid adoption inside Google

10.
Deep
Learning:
Learning from
Massive data
Reinforcement
Learning:
Auto-
Learning
Transfer
Learning:
Solve sparse-
data problem
Today Future
Machine Learning: Only the beginning….
Credit to: Prof. Yang Qiang, HKUST

11.
Scientist Question #1: When will AI work?
Five
conditions
of AI
Clear
boundaries
Auto-
collected
feedback
loop
Computing
resources
Big data
(ideally
closed-
loop)
Top data
scientists
Credit to: Prof. Yang Qiang, HKUST

12.
1 2
3 4
Own end-to-end data
Hire best scientists
Buy hardware optimized for AI
$100,000,000 $400,000,000
Train young people in “AI alchemy”
Scientist Question #2: How to profit from AI?

13.
1 2
3 4
Assist and not replace people
“Trick”users to provide data
“Error-tolerant”user interface
Constrained application scena
“无人驾驶”
Scientist Question #3: How to succeed despite AI imperfections?

14.
Scientist Question #4: Best AI founder = ?
The Internet era The App era The O2O era The AI era
US Returnee
Product manager
On-the-Ground Sales
+
Back-end Technologist
AI Scientist
+
Enterprise Sales Leader
YOU

15.
L1:
(AI as input to
humans)
Vision
Voice
Language
Gesture
Industrial
Robots
Househol
d Robots
Big Data Perception Robotics
Autonomous
Driving
Stage3–5yr5–10yr10yr+
Internet
Application
All-terrain fully
autonomousdri
ving
L2-3:
(AI assisting
human driver)
AR/VR &
New natural
interface
Com-
mercial
Robots
Cross-domain and general
natural language understanding
L4
(Human assisting
AI)
Investment
Insurance
Banking
Healthcare
Education
Any industry with
big data
Artificial intelligence + computing architecture
+ algorithm framework + sensing platform
BI、
Business
process
automation
Mass
produced
sensors
Sinovation Ventures AI roadmap
Understanding
Expensive sensors:
Infrared, depth
camera,
Gyroscope,
Lidar…

16.
Attract top tech talents
Collect cross-
cutting big data
Build up a platform
and create a cluster
(2) Series A+B VC
Sinovation Ventures AI Strategy
Top engineers
Explore
collaboration with
industry leaders
Look for the
best AI
opportunities
(1) Early stage incubation:
AI Institute

17.
Sinovation Ventures: $675M duo-fund just raised
USD Fund III
300M USD
RMB Fund II
2.5B RMB
39%
22%
32%
5%
2%
Type of LPs
大学基金会和退休基金 家族办公室和捐赠基金 上市公司
主权基金 美元母基金
University funds
& pension funds
Family offices &
endowment funds
59%
10%
20%
11%
Type of LPs
高净值个人及财富管理机构 上市公司
政府引导资金 人民币母基金
Sovereignty funds USD FOFs
Public companies
Public companiesWealth mgmt. institutions
RMB FOFsGov’t guidance funds

18.
The most complete AI research and
blueprint in industry.
• Include detailed predictions and
methodology.
Sinovation Ventures AI portfolio
Series A+B VC
The most important investment area
for Sinovation Ventures.
• 25 portfolio companies in total.
• 75% in China, 25% in the U.S.
• Total investments in AI > US$100M.
Sinovation Ventures raised new
capital in preparation.
• Total AUM: US$1.2B.
Provide comprehensive help to
portfolio companies.
• Cooperation both at home and abroad.
• Industry analysis and insights.
• Global & campus recruitment.

19.
• ImageNet World Champion.
• FaceID having been called
over 2 billion times.
• Leader in China’s unmanned
driving.
• Founded by former head of
Intel China Research Institute.
• Preparing for going public on the
Hong Kong stock market.
• Covering 1.1 billion devices
globally.
• ACM world champion.
• Founded by Baidu's youngest
scientist.
• Gathered industry’s top AI experts.
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• Innovated K12 English
textbooks in China.
• Product used in > 10,000
schools nationwide.
• Founded by former head
of Baidu IDL.
• A rising star for both
capital & talents.
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The world's fastest
developing K12
programming toy robot
Compact, low-power, high-
resolution computer vision
processor.
• Industry leader in video
conference.
• Defined the family-
accompanying robot.
• Work with first-class
researchers & scientists.
• Artificial Intelligence +
General Robots.
Sinovation Ventures’ top AI portfolio with campus recruitment

20.
Attract top tech talents
Collect cross-cutting
big data
Build up a platform
and create a cluster
Top engineers
Explore collaboration
with industry leaders
Look for the best
AI opportunities
• Top tech talents / EIR
• Most promising
young engineers
• Industry experience
from Sinovation Ventures
Sinovation Ventures: AI Institute ($60M funding just raised)

21.
• Example I：
• >20000 Google citations
• Top scientist from academia
• Breakthrough AI application in robotics
• Example 2:
• Key technical position at 3 US & China giants
• Access to exclusive big data access
• Develop specific industry application
• Example 3:
• Director at top company
• Experience in NL/speech and deep learning
• Planning unique consumer product/experience
Sinovation Ventures Technical EIRs

22.
Jiaping Wang – Senior AdvisorYonggang Wang - VP of AI
Institute
Qin Liu - Senior Expert
Yonggang was a Staff Engineer and
Senior Manager at Google where
he was responsible for Desktop
Search, Product Search, Knowledge
Graph, and Pinyin input methods.
Prior to that, he was a Technical
Director at 任方正奥德 building
wide range of financial software
products. Yonggang is a graduate
of Beijing University.
Jiaping was a Lead Researcher and
Team Lead at Microsoft Research
(Seattle). He has published in
SIGGRAPH multiple times and hold
more than 10 patents. He also has
full-stack experience in
recommendation systems, P2P
networks, quantitative trading,
HPC, and GPU Computing. Jiaping
received his PhD from Chinese
Academy of Sciences where he won
the best dissertation in China
(“Data-Driven Appearance
Modeling”)
Qin was previously an engineer at
Google. He has extensive
experience in automated testing
of optical equipments and
wireless networking. Since leaving
Google in 2009, he ran a
successful quantitative hedge
fund. Qin received his BS from
University of Waterloo and MS
from University of Toronto.
Sinovation Ventures AI In-house experts

23.
Sinovation Ventures & portfolio companies recognized as AI leaders

24.
Contact: kfl@chuangxin.com