Intel Capital backs two Chinese AI companies

The China targets are smart retail technology provider Cloudpick and chip design specialist Zhuhai EEasy Technology. The venture capital firm has declined to specify allocations for individual companies.

Founded in 2017, Cloudpick develops a range of systems and technologies applicable in automated retail, including computer vision, deep learning, sensor fusion, and high-performance computing. The company also helps traditional retailers build out their e-commerce presence and has provided cashless “grab-and-go” shopping technology to about 30 brick-and-mortar stores to date.

Eeasy was launched in 2016 by Feng Chen, a co-founder of Actions Semiconductor, which received backing from Intel Capital and New Enterprise Associates among others before going public in the US in 2005. The company positions itself as a comprehensive services provider in chip-based AI segments, including graphics processing for video surveillance and automotive-related applications.

The deals highlight a recent strategic pivot by Intel Capital toward taking larger positions in start-ups. This has seen the size of the portfolio reduce from 470 four years ago to 340 currently. Wendell Brooks, the firm’s president, said the plan was to take a leadership role among corporate VCs by further reducing the portfolio to 250-300, speeding up the due diligence process, and taking more board seats.

“When I took over four years ago, we were very much a passive investor that wanted to sit back and play many different parts of the investment spectrum. We’re now very focused on those areas where we strategically add value,” Brooks said at Intel Capital’s global summit in the US. “You add a heck of a lot more value when you’re actually a member of the board and you have to come in with ideas and participate.”

Implementation of best practices in the style of a financial GP has also included the scrapping of a corporate bonuses system as part of a compensation model overhaul. “We have all taken a pretty dramatic base pay cut, and we’re very focused now on participation and outcomes of our portfolio companies,” Brooks added. “So our interests now are very much aligned."

Since 1991, Intel Capital has invested some $12.5 billion in more than 1,550 companies, 670 of which have gone public or participated in a merger or acquisition. Previous activity in China includes commitments to microchip maker Espressif, cloud software provider Alauda, and AI developer Reconova. Last year, the firm backed Beijing-based medical imaging company Huiyi Huiying.

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