Against the backdrop of persistent losses in the AI industry in general, Magic Engine (Chinese：魔数智擎) doubled its order volume and revenue in 2022, reaching over 10 million in revenue and breaking even.
Magic Engine, a new generation AI technology and service provider, announced that it has raised over CNY10 million in Series A. The Series A funding was exclusively invested by Ideal Capital(Chinese：理想资本), with Huaxing Securities(Chinese：华兴证券) as the exclusive financial advisor. The funds raised in this round will primarily be used to expand the pre-sales and delivery teams to better serve customers nationwide.
Based on application areas, AI is broadly classified into visual AI, linguistic and semantic AI, AI robotics, and decision AI. Magic Engine focuses on the fourth category. Magic Engine is an AI decision intelligence service provider that provides an interpretable, actionable and simplified AI decision model platform. And a set of standardized software to help customers greatly improve the efficiency of model production, iteration and management, increasing the efficiency of AI modeling by 30~40 times, outputting a business-oriented decision intelligence platform, serving finance, medical, retail, research and other industries in a variety of business scenarios such as intelligent risk control, precision marketing, customer relationship management and data operations.
Through market research, Magic Engine has found that many AI machine learning software in the market are somewhat unconvincing when applied to specific businesses. On the one hand, their black box model can only provide results after data analysis and modeling, but cannot provide a reasonable explanation for the predicted results, making it difficult for users to build trust in the model. On the other hand, the disconnect between model building and real business, coupled with the high threshold of use, makes it impossible to implement the models to solve real business problems.
In response to the problems in the market, the first generation of Magic Engine's interactive machine learning platform was officially launched in 2019. Its model-explainable technology solves the problems caused by traditional black box models, and compared with competing products in the industry, Magic Engine improves the product accuracy by 3% to 8%, increases the speed by several to ten times, and reduces the cost by more than 60%.
Chai Lei, the founder of Magic Engine, believes that in certain industries, such as finance and healthcare, the methodology of fully automated black box AI under Internet logic is too radical. AI is a tool to improve efficiency and handle massive amounts of data, and is an effective complement to humans. The most reliable model should be the collaboration between humans and machines, and the co-growth of AI and humans. Therefore, the product should not only be easy to use, but more importantly, it should fit the business application. This is also the advantage of Magic Engine.
Magic Engine’s competitors include Sense Time(Chinese：商汤科技), Cardinal Operations(Chinese：杉树科技) and Youhualin(Chinese：悠桦林).