Xiao-I Corporation Forecasts $12-15 Million in New Revenue in 2025 from AI Glasses Driven by Strong Demand and Central Procurement Invitations

Rhea-AI Summary

Xiao-I (NASDAQ: AIXI) has announced significant progress in its U.S. expansion efforts. The company has been invited to register for centralized procurement programs by key U.S. clients, marking an important milestone in its overseas growth strategy. The company's AI-powered glasses, launched in August, have received strong market acceptance. Xiao-I projects delivery of at least 10,000 units in 2025, expecting to generate $12-15 million in new revenue. The AI glasses are designed to bridge communication gaps and provide support for underserved individuals and families.

Positive

• Invited to register for centralized procurement programs by key U.S. clients
• Projected delivery of 10,000 AI glasses units in 2025
• Expected new revenue of $12-15 million from AI glasses in 2025
• Strong market acceptance of AI glasses product launched in August

Negative

• None.

Insights

Financial Analyst

The forecasted $12-15 million revenue from AI glasses in 2025 represents a significant opportunity for Xiao-I, especially considering their current market cap of $54 million. With projected sales of 10,000 units, this implies an average price point of $1,200-1,500 per unit. The central procurement program inclusion could provide a stable revenue stream and reduce customer acquisition costs. However, investors should note these are forward-looking projections and actual results may vary based on market conditions, competition and execution capabilities. The company's expansion into hardware with AI integration shows strategic diversification beyond their core software business, though manufacturing and distribution costs could impact margins.

Tech Expert

The AI glasses market represents an emerging segment in wearable technology, with Xiao-I positioning itself alongside competitors like Meta and Google. The focus on accessibility applications demonstrates a strategic niche approach rather than competing directly in the consumer market. Their emphasis on institutional procurement channels suggests a B2B/B2G strategy that could provide more stable demand compared to consumer markets. The integration of AI for communication support indicates sophisticated natural language processing capabilities, though success will depend on the actual performance and user experience of these devices in real-world scenarios.

12/17/2024 - 09:45 AM

ROCKVILLE, Md., Dec. 17, 2024 /PRNewswire/ -- Xiao-I Corporation (NASDAQ: AIXI), a leading artificial intelligence company ("Xiao-I"), today announced significant milestones in expanding its U.S. presence and delivering impactful technology solutions.

Breakthrough in U.S. Key Clients' Procurement Programs

Xiao-I has been invited to register for centralized procurement programs by key clients, marking a critical step in its strategy to provide AI-driven solutions to US organizations. The inclusion in these procurement lists underscores the company's commitment to advancing accessibility and innovation in oversea business expansions.

"We are honored to be considered for these procurement programs, which will allow us to bring our AI technology to more communities in need," said Hui Yuan, CEO of Xiao-I. "This milestone not only reflects our growth in the U.S. market but also supports our mission to make life easier for underserved individuals through accessible solutions."

AI Glasses Driving Inclusion and Accessibility

Xiao-I's AI-powered glasses, launched in August, have been widely embraced by the market. These glasses leverage advanced AI to bridge communication gaps, providing life-changing support for underserved individuals and families.

The company estimates delivering at least 10,000 units in 2025, generating $12-15 million in new revenue for the year. These figures represent the company's best current estimates based on market conditions and anticipated demand.

Commitment to AI for Good

As part of its mission to harness AI for societal benefit, Xiao-I focuses on developing technologies that address real-world challenges. By aligning innovation with accessibility, the company continues to expand its reach and impact globally.

About Xiao-I Corporation

Xiao-I Corporation is a leading cognitive intelligence enterprise in China that offers a diverse range of business solutions and services in artificial intelligence, covering natural language processing, voice and image recognition, machine learning, and affective computing. Since its inception in 2001, the Company has developed an extensive portfolio of cognitive intelligence technologies that are highly suitable and have been applied to a wide variety of business cases. Xiao-I powers its cognitive intelligence products and services with its cutting-edge, proprietary AI technologies to enable and promote industrial digitization, intelligent upgrading, and transformation. For more information, please visit: www.xiaoi.com.

Forward-Looking Statements

This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as "may," "will," "intend," "should," "believe," "expect," "anticipate," "project," "estimate" or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the following: the Company's ability to achieve its goals and strategies, the Company's future business development and plans for future business development, including its financial conditions and results of operations, product and service demand and acceptance, reputation and brand, the impact of competition and pricing, changes in technology, government regulations, fluctuations in general economic and business conditions in China, and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the U.S. Securities and Exchange Commission ("SEC"). For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the SEC, including under the section entitled "Risk Factors" in its annual report on Form 20-F filed with the SEC on April 30, 2024, as well as its current reports on Form 6-K and other filings, all of which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

For investor and media inquiries, please contact:

Ms. Berry Xia
Email: ir@xiaoi.com 

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SOURCE Xiao I Corporation

FAQ

How much revenue does Xiao-I (AIXI) expect from AI glasses sales in 2025?

Xiao-I expects to generate $12-15 million in new revenue from AI glasses sales in 2025.

How many AI glasses units does Xiao-I (AIXI) plan to deliver in 2025?

Xiao-I plans to deliver at least 10,000 units of AI glasses in 2025.

When did Xiao-I (AIXI) launch its AI-powered glasses?

Xiao-I launched its AI-powered glasses in August 2024.

What recent milestone has Xiao-I (AIXI) achieved in the U.S. market?

Xiao-I has been invited to register for centralized procurement programs by key U.S. clients, marking a significant step in its U.S. market expansion.