Chinese AI Startup closing in US
Chinese AI startup is said to be closing the Santa Clara operations it’s HQ. Clouds Mind Technology Inc. is slashing jobs in the range of 175 to 225. It was told to Reuters that Beijing based Artificial Intelligence company is closing down its operations in Santa Clara.
It is said that CloudMinds is the latest Softbank backed loan company which is about to close down its operations in United States. In the last summers, CloudMinds was supposed to scale the operations and that was the reason for the increased workforce.
They have scaled the employee strength from 100 to 716 in last summers, also expecting a funding. It was led by the Chinese Entrepreneur Bill Huang, who was a serial startup geek. They touted to plan to produce a series humanoid robots and it includes Cloud Pepper. It was backed by Softbank for the funding part. Cloud Pepper was an enhanced robotic version which was cloud connected version of Softbank division of robotics.
Last May, Softbank invested $186 Million funding before the CloudMinds decided to go public and plans to close $500 Million in the IPO. The total funding raise was $316 Million which has mostly Chinese investors at that point.
CloudMinds has reportedly failed to find support at the Hong kong Stock Exchange and now they are try to find listing on the Beijing Stock Exchange. It is anticipated that more and more job cuts are expected at the Soft Bank backed funding of startup. Maybe it appears that Soft Bank is running into murky waters.