AI voice recognition startup cuts 20% of its workforce in a high Interest Rate environment, making financing difficult.

A AI startup focused on voice recognition software recently announced it would lay off about 20 employees, accounting for 20% of its total workforce. This marks the company's second round of layoffs this year. The CEO stated that the layoffs were primarily due to the challenging financing environment caused by high Intrerest Rate.

The company was established in 2015 and has received support from several well-known investment institutions. Currently, it is facing fierce competition from open-source software and tech giants.

In the layoff notification given to employees, the company's senior management mentioned the challenges of the entrepreneurial financing environment, macroeconomic difficulties, and the company's performance over the past year. The employees being laid off include data scientists, researchers, and engineers.

Although this round of layoffs has not garnered widespread attention, it reflects the pressures that AI startups are facing in this rapidly changing era.

The CEO stated in a statement: "Given that the Federal Reserve has hinted that high Intrerest Rates will last longer, we must take a conservative approach, control cost growth, and focus on the company's performance."

Despite the fact that the company has just experienced its "best quarter since its inception," the CEO refused to disclose specific revenue figures. Last fall, the company announced it had raised $47 million, bringing its total funding to $86 million and its valuation to $267 million.

In the past year, despite many private software startups conducting layoffs, the AI sector has remained a highlight for startup financing. However, with increasing market competition, some previously high-performing AI startups are beginning to face challenges.

The company's predicament also reflects the potential impact of open-source software on proprietary AI. Although open-source large language models are not as powerful as proprietary models, the gap is narrowing.

Unlike large language models, speech recognition software has been commercialized for decades and has been promoted through various voice assistants. The company provides speech recognition services for enterprise clients, claiming that its solutions are more accurate and faster than existing options.

However, as tech giants improve their services and other startups launch similar products, corporate clients are beginning to cut software spending, making it difficult for vendors to secure new business.

Faced with competitive pressure, the company's CEO insists that their product quality is higher and more precise. He also believes that the emergence of open-source projects helps the entire industry understand the potential of AI voice recognition software.