Amid rising geopolitical tensions, many Chinese tech companies find themselves recalibrating their overseas pursuits, often avoiding any reference to their origins. A bold startup called DP Technology stands out from the crowd. Working to apply artificial intelligence to molecular simulations, DP, short for “Deep Potential,” believes it will pave the way for the global expansion of the unifying power of “scientific research for humanity.”
Founded in 2018, with renowned mathematician Weinan E as an advisor, DP provides a set of tools for carrying out scientific computation, a process in which “computer simulations of mathematical models play an indispensable role in the development of technology and scientific research.” University of Waterloo description. Fields that can benefit from scientific computing range from biopharmaceutical research to car design and semiconductor development.
While the world is currently focused on using AI to create text, images, and video, DP finds itself in less-exploited territory: combining machine learning, which allows computers to automatically learn from specific data, with molecular simulations that analyze the real world. When applied together, machine learning can increase the speed and accuracy of simulations to solve problems in the physical world.
“In the past, when there was no good computing or AI platform, everyone relied on trial and error based on experience. This process was often called ‘cooking’ or ‘alchemy,'” Sun Weijie, CEO and founder of DP, told TechCrunch in an interview .
“This approach was relatively effective in the early stages of industrial development because users’ expectations for iteration were not as high, but now there is a growing demand for [technological] advances,” he continued. “For example, consumers expect increases in battery capacity every year and expect better performance from each new generation of vehicles. “The traditional R&D model can no longer sustain these rapid market changes.”
“A breakthrough in the approach to research and development is needed to keep up with these expectations for rapid iterations,” he added.
In addition to providing software to industrial researchers and designers, DP goes a step further by selling services customized to their needs and conducting R&D processes for customers who would not otherwise be able to fully exploit the potential of their tools.
This mix of SaaS and service business models has proven some initial success in China. DP is expected to win contracts worth about 100 million yuan ($14 million) in 2023, up from contracts worth “tens of millions of yuan” last year. Now it is preparing to bring this strategy to Western markets dominated by deep-pocketed giants like DeepMind.
“There is an old saying in China: Children of the poor mature early. “With far less funding available, we are poor children compared to companies like DeepMind and OpenAI,” Sun said.
To date, DP has raised approximately $140 million from leading Chinese VC firms such as Qiming Venture Partners and Source Code Capital. By comparison, 13-year-old DeepMind was acquired by Google in 2014 for over $500 million. The London-based AI giant reported profits of £44 million ($60 million), down from £477 million ($650 million) in 2020. ) loss in 2019.
Sun claimed that although DP’s physical headquarters is in Beijing, it was designed with a global mindset, thanks to DeepModeling, the open-source scientific computing community he founded. His first anchorage in China was also accidental rather than deliberate. “The COVID-19 pandemic stopped international shopping, so we decided to stay there for the first two years and work on making money,” Sun said.
DP’s international expansion will open an office in the United States and work with a partner to distribute its products and services. Looking to establish a presence in the new market, the startup plans to build its reputation by tapping into the open source community and attending trade shows, which Sun describes as a relatively “tight-knit circle of basic research.”
Sun, however, exuded confidence in science’s resilience in the face of geopolitical complications. “Both the fields of basic science and biopharmaceuticals are shared by all of humanity, and they are relatively open and inclusive. Comparatively speaking, I believe that these areas will be fine,” he said.