4Paradigm, the China-based creator of an artificial intelligence software development tool, has received more than RMB1bn ($145m) in a series C round featuring power producer China Three Gorges, Pandaily reported yesterday.
The deal, which valued 4Paradigm at approximately $1.2bn, included holding groups Citic Group and China Poly Group, government-owned banks Agricultural Bank of China and Bank of Communications, Tsinghua University Science Park, Sequoia Capital China and China Reform Holdings.
4Paradigm has designed a software platform called Prophet that enables enterprises to easily create AI and machine learning-powered applications to improve the operational efficiency and decision-making of their businesses.
The company’s core service helps banks identify customers and detect fraud, according to Bloomberg, but its technology has also been used in areas such as medical care, energy, retail, media and government.
4Paradigm is now working on a bespoke processing chip that will be bundled for sale with its software, and which is intended to handle its algorithms more efficiently.
Dai Wenyuan, co-founder and chief executive of 4Paradigm, told Bloomberg: “What we are doing is to set up a platform for the data they collect, from all the different data sources, to generate their own models. In China, the customer is willing to pay for hardware much more than software.”
Another trio of state-owned banking groups – Bank of China, Industrial and Commercial Bank of China and China Construction Bank – are already investors in 4Paradigm, after backing a round of undisclosed size in January 2018.
4Paradigm had reportedly received an undisclosed amount of series B funding from Genesis Capital and Zhongwei Capital, after closing a series A-plus round backed by Sinovation Ventures and a series A featuring Sequoia Capital China, though dates for those deals could not be ascertained.
– A version of this article first appeared on our sister site, Global University Venturing.