SoundHound, has had an interesting journey from its inception as a music identification service to its evolution into a comprehensive voice AI platform. I was unaware of this journey as I thought SoundHound had simply faded away as a Shazam competitor. So, I decided to share what I learned about a company that was in AI prior to the launch of ChatGPT and how it has endured and is, potentially, poised to excel.
The Early Days: Music Identification
SoundHound began as a music identification service, similar to Shazam. The SoundHound app, which has been downloaded more than 310 million times, allowed users to discover music, create and add playlists, find artist information, and more. Users could play a song just by speaking its title or by humming it.
Incorporating AI: The Birth of Houndify
In December 2015, SoundHound launched Houndify, a natural language assistant akin to Amazon’s Alexa, Apple’s Siri, and the Google Assistant. Houndify was built on SoundHound’s years of research in song detection and recognition. It was capable of simultaneously performing and interpreting speech, a process most voice assistants at the time split into two steps. It also had contextual awareness, allowing users to ask follow-up questions without having to repeat the original invocation.
SoundHound’s music recognition technology was then integrated into the Houndify platform, making it available to original equipment manufacturers, brands, and partners. This allowed developers to license music search for use within apps or via voice commands.
Acquisition and Going Public
SoundHound’s journey took a significant turn when it announced a merger with Archimedes Tech SPAC Partners Co., a special purpose acquisition company. The combined company, called SoundHound AI, Inc., began trading on Nasdaq under the new ticker symbol “SOUN” from April 28, 2022.
The successful combination of the two entities continued SoundHound’s momentum over recent months with respect to key customers and expansion of its executive team. SoundHound also confirmed a multi-year agreement with Qualcomm to bring its voice AI technology to Snapdragon platforms.
In another significant move, SoundHound AI Inc. announced it would acquire SYNQ3 Restaurant Solutions, a voice artificial intelligence and technology provider for restaurants, in a deal valued at $25 million. This acquisition extended SoundHound’s services to 10,000 locations and more than 25 national and multinational chains.
NVIDIA’s Investment in SoundHound
In a significant development, NVIDIA, a leading player in the GPU market, disclosed its $3.7M investment in SoundHound AI on February 14, 2024. This investment sent SoundHound’s stock soaring. NVIDIA’s investment in SoundHound was not a new development. In fact, NVIDIA had invested in SoundHound as early as 2017 as part of a $75 million venture round.
NVIDIA’s investment in SoundHound can be seen as a strategic move. SoundHound’s Houndify platform, which enables companies to create customized voice recognition tools, aligns well with NVIDIA’s focus on AI and machine learning. NVIDIA’s GPUs are often used to power generative AI tools, making this investment a logical step for the company.
The investment by NVIDIA, which held about 0.7% of SoundHound’s outstanding shares, was seen as a vote of confidence in SoundHound’s ability to grow in the shadow of its larger competitors. Despite SoundHound’s high valuation, sizable debt, and persistent losses, NVIDIA’s investment indicated its belief in SoundHound’s potential.
The Future of SoundHound
SoundHound’s evolution from a music ID service to a comprehensive AI platform is a testament to the company’s innovative spirit and commitment to pushing the boundaries of technology. As SoundHound continues to grow and evolve, it will be interesting to see if its partnerships jettison the business from lackluster ticket symbol to feeling that NVIDIA shine.
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