Plaud: The AI Notetaking Revolution

On a rainy July morning in Amsterdam, Nathan Xu clips a slim, memory stick-sized device to his shirt. With a click, this pill-shaped gadget—dubbed the NotePin—starts recording, transcribing, and summarizing conversations in real-time. Made by Xu's startup Plaud, it leverages AI tools like ChatGPT to turn up to 20 hours of recordings into searchable transcripts.

Since its 2023 launch, Plaud has sold over 1 million devices to professionals like doctors, lawyers, and businesspeople, making it a front-runner in the wearable AI space. Unlike many competitors, Plaud is not only profitable but bootstrapped, with Xu and cofounder Charles Liu funding it through savings and a $1 million crowdfunding campaign. The company is on track for $250 million in annualized revenue, boasting margins comparable to Apple's.

The Rise of Wearable AI

Plaud is part of a growing trend to move AI out of phones and onto the body. Competitors like Rabbit and Humane have stumbled, while investors pour $350 million into startups like Omi and Limitless. Big players are also entering: Amazon acquired Bee, and OpenAI spent $6.4 billion on Jony Ive's AI device startup. As AI notetaking becomes commonplace, etiquette around recording is shifting, with many assuming all meetings are captured.

From Failure to Success

Xu's journey began after a banking career was upended by an innovation class. His first startup failed, draining his savings, but he found success as a venture capitalist, backing companies like Akulaku. In 2021, he spotted an opportunity in Shenzhen's hardware market, leading to the creation of Plaud. The pivot from a spy gadget (Izyrec) to a professional tool with AI integration via a Kickstarter campaign netted over $1 million in pre-orders.

Challenges and Opportunities

Plaud faces ethical and legal hurdles, with strict laws on recording without consent. Xu emphasizes consent and positions Plaud as a productivity tool for business meetings. The company is expanding into healthcare with templates for patient consultations and a recent acquisition of a San Francisco-based software startup. Despite competition from giants like Microsoft and Apple, Xu believes wearable AI will surpass smartphones in popularity.

With a team split between Shenzhen and San Francisco, Plaud is positioning itself as an American company to navigate geopolitical tensions. Future plans include new device designs and enhancing AI capabilities to create a true "work companion."