Story of Plaud AI : Founder and CEO - Nathan Xu
Story of Plaud AI :
Nathan Xu, a graduate of Wuhan University, didn’t start his journey smoothly. His first startup, a website to help Chinese students apply to colleges abroad, failed and drained his family’s savings. But instead of giving up, he kept experimenting with new ventures, even if the next two also struggled.From Banker to Investor
Xu’s persistence led him into venture capital. At China Growth Capital, he
invested in early-stage startups like Akulaku, which later became a $2 billion
company. His colleagues described him as a thinker who always wanted to be at
the frontier of technology.
A Spark in Shenzhen
By 2021, Xu was eager to return to building his own company. Frequent visits to
Shenzhen exposed him to factories producing low-cost smart gadgets like pens
and bracelets with recording features. He realized that outside China,
dictaphones were outdated, and no one was combining modern hardware with AI
transcription at scale.
A Partnership with Charles Liu
Xu teamed up with Charles Liu, a factory owner experienced in making wearables.
Their first attempt was Izyrec, a small app-linked recorder marketed for
personal use. It found some success, but Xu saw a much larger opportunity as AI
tools like ChatGPT entered the mainstream.
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Birth of Plaud AI
In 2023, Xu and Liu launched Plaud AI with a new vision: wearable AI devices
that record, transcribe, and summarize conversations. Their first products —
the Plaud Note and NotePin — were sleek gadgets designed for professionals like
doctors, lawyers, and business executives.
Explosive Growth
Plaud AI quickly gained momentum. Within a year, they sold over 1 million
devices globally, with users averaging 30 hours of recordings per month. Unlike
many startups, Plaud was bootstrapped and profitable, reaching a $200 million
run rate with margins comparable to Apple.
A Professional Image
Xu carefully positioned Plaud devices as productivity tools, not spying
gadgets. He emphasized that users should always get consent before recording.
The focus, he explained, was to save time in meetings and make conversations
actionable through AI-driven summaries.
Global Expansion
Plaud set up offices in both Shenzhen and San Francisco. Shenzhen remained the
hub for hardware design, while San Francisco became the base for AI
development. With geopolitical tensions rising, Xu stressed that Plaud was an
American company, storing all user data on Amazon servers in the U.S.
Competition and Challenges
The wearable AI space became crowded with competitors like Omi, Limitless, and
even tech giants like Apple and Microsoft. Yet Plaud’s profitability and strong
product-market fit gave it an edge. Still, privacy concerns and the possibility
of being overshadowed by big tech remain challenges.
Looking Ahead
Xu believes wearable AI will soon be more popular than smartphones. He
envisions Plaud not just as a voice recorder but as a true “AI work companion.”
With ambitions to raise a $500 million war chest, Xu aims to push Plaud into
new industries like healthcare while continuing to expand globally.
Short Timeline of Plaud AI Story
- Early
2010s: Xu launches early startups all fail.
- 2012–2017:
Becomes a venture capitalist, backs Akulaku and others.
- 2021:
Identifies opportunity in AI-powered recorders during trips to Shenzhen.
- 2022:
Teams up with Charles Liu, launches Izyrec recorder.
- 2023:
Rebrands to Plaud AI; launches Note & NotePin via Kickstarter ($1M+
preorders).
- 2023–2024:
Sells 1M+ devices, reaches $200M revenue run rate, opens U.S. office.
- 2025
and beyond: Plans to expand into healthcare and enterprise AI tools,
targeting $500M in funding and wider adoption.
