CloudWalk Technology
| Company type | Public |
|---|---|
| Industry | Facial recognition software, Artificial intelligence |
| Founded | 2015 |
| Founder | Zhou Xi |
| Headquarters | Guangzhou , China |
Area served | China, Zimbabwe |
Key people | Zhou Xi (Founder) |
| Products | Facial recognition software, AI large language model (Comfort) |
CloudWalk Technology Co. Ltd. is a Chinese company focused on developing facial recognition software. Established in 2015 by Zhou Xi and based in Guangzhou, Guangdong, it is publicly traded on the Shanghai Stock Exchange (SSE: 688327).
Renowned for its sophisticated facial recognition solutions implemented across multiple industries within China, CloudWalk has also encountered considerable international criticism and sanctions imposed by the United States government. These measures stem from allegations of its involvement in human rights violations targeting Uyghur populations, which have affected the company’s international partnerships and access to global markets.
History
Zhou Xi, an alumnus of the University of Science and Technology of China with a background in artificial intelligence and pattern recognition, founded CloudWalk in April 2015 after departing from the Chinese Academy of Sciences. The company obtained initial financial support from Guangzhou’s municipal government in 2017. During that year, it secured $379 million through a Series B funding round from investors such as Shunwei Capital, Oriza Holdings, and Puhua Capital.
In 2018, CloudWalk entered into a collaboration with Zimbabwe’s government to create a nationwide facial recognition database alongside a surveillance system. Although experiencing swift expansion, the firm reported a net loss totaling US$398 million between 2018 and 2020. Regulatory hurdles related to personal data protection delayed its public offering. The company's application for an initial public offering (IPO) was approved by the Shanghai Stock Exchange in 2021, with shares launched in May 2022. Nevertheless, due to prevailing market conditions, the IPO price was reduced by 29% compared to its pre-IPO valuation.
In May 2023, CloudWalk introduced Comfort, a large language model entering beta testing, signaling the company’s strategic move toward advanced artificial intelligence technologies.
Involvement in Uyghur Mass Surveillance
On May 22, 2020, the United States Department of Commerce placed CloudWalk Technology on its Entity List for contributing to the Chinese government’s extensive surveillance operations targeting the Uyghur community. This technology was developed in partnership with the University of Illinois at Urbana–Champaign. U.S. authorities accused CloudWalk of being "complicit in human rights violations and abuses" linked to repression, arbitrary detention, forced labor, and sophisticated surveillance against Uyghurs, ethnic Kazakhs, and other Muslim minority groups residing in Xinjiang.[1] Subsequently, in December 2021, the United States Department of the Treasury prohibited all U.S. investments in CloudWalk due to its involvement in facilitating what has been described as the Uyghur genocide.[2]
In October 2022, CloudWalk was designated as a "Chinese military company" operating within the United States by the United States Department of Defense.[3]
Clients
CloudWalk serves as a key provider of facial recognition technology for leading Chinese financial institutions such as the Bank of China and Haitong Securities.[4]
In 2018, it secured an agreement with Zimbabwe’s government to implement a comprehensive facial recognition system across critical transportation nodes and establish a national facial identification database.[5][6]
External links
- Software enterprises based in China
- Chinese firms founded in 2015
- Facial recognition technology
- Brands originating from China
- Chinese organizations listed under U.S. Department of the Treasury sanctions
- Defense corporations of the People's Republic of China
- Defence companies of the People's Republic of China