SoundHound AI (SOUN -1.11%) won’t take pleasure in the identical hype as Nvidia or Palantir within the inventory market, however this mid-cap voice AI firm is quietly increasing its footprint throughout the globe. In doing so, it could be constructing one thing far greater than most buyers at the moment understand.
Whereas SoundHound AI is greatest recognized for powering restaurant drive-thrus and automotive infotainment methods, there’s much more to its progress story. From Asia to Latin America, it is tapping into one of the vital important, missed alternatives in AI: the shift to voice as the first human-machine interface.
Picture supply: Getty Photographs.
A multilingual AI voice platform
Among the many strongest but underrated belongings SoundHound AI has are its built-in and proprietary options for greater than 25 languages. That is greater than only a technical feat. In international markets, providing a voice AI interface that capabilities correctly in native languages is a must have. English-only will not minimize it.
As firms proceed to combine AI into new bodily methods, from automobiles to sensible home equipment, the power to handle native language and cultural nuances will turn out to be a major aggressive benefit. That is exactly why SoundHound has been successful new contracts and partnerships.
Within the first quarter of 2025, it partnered with Chinese language tech large Tencent to develop its footprint within the international auto market, constructing on its current relationships within the business with producers equivalent to Hyundai, Kia, Stellantis, and Samsung‘s Harman division.
SoundHound AI additionally renewed contracts with two Japanese multinational firms that supply companies throughout quite a few industries, and it signed a deal to supply a serious Latin American resort developer with an AI agent concierge.
These partnerships level to one thing greater: Demand for AI-powered voice interfaces is not restricted to the U.S. It is a international pattern, and SoundHound AI is rising as a frontrunner within the house.
Huge alternatives for enlargement in core industries
SoundHound AI’s most important and apparent alternative lies within the international automotive business, and it isn’t arduous to see why. In 2024, new mild automobile gross sales reached 88 million items globally, and this quantity is predicted to extend to 95 million by 2028. Automakers are racing to make automobiles extra linked, voice-enabled, and clever — and SoundHound AI is true on the heart of that transition.
In response to the corporate, its voice AI is in simply 3% to five% of the automobiles offered by its current prospects. In different phrases, the corporate has already landed some huge shoppers — it now must develop its relationships with every of them and to signal new offers with different OEMs globally.
There are a number of the reason why SoundHound AI is within the driver’s seat relating to rising its automotive enterprise. In contrast to rival functions like Siri, Alexa, or Google Assistant, SoundHound presents a completely embedded voice AI that runs instantly on every automobile’s native {hardware} — no cloud connection or exterior ecosystem is required.
That issues loads to automakers, because it permits them to take care of management over consumer information and retain their branding somewhat than handing over the consumer expertise to Apple, Amazon, and Alphabet. This unbiased, customizable platform is a major promoting level in an period when manufacturers wish to management their in-car expertise from finish to finish.
One other apparent space for international progress is the restaurant business. Within the U.S., SoundHound is already working with distinguished chains equivalent to White Citadel, Chipotle, Jersey Mike’s, and others to deploy its voice AI to deal with buyer interactions throughout cellphone ordering, kiosks, and drive-thrus.
However the greater prize could also be abroad. Within the U.S., the corporate views its complete addressable market within the house at round 800,000 eating places, however globally, the quantity is much greater. As soon as it has absolutely confirmed the worth of its product within the U.S., enlargement into worldwide franchises would be the logical subsequent step.
Extra industries, extra monetization
Whereas automotive and eating places are SoundHound’s most established verticals right now, the corporate’s long-term alternative goes far past these two industries. As voice interfaces turn out to be extra succesful, dependable, and pure, new use instances are rising, opening the door to broader monetization.
The corporate has already expanded into areas like:
- Customer support name facilities, the place AI brokers (leveraging generative AI applied sciences) can automate routine cellphone interactions, bookings, and assist.
- Good dwelling and Web of Issues (IoT) units, the place embedded voice interfaces enable producers to create branded, offline-capable experiences.
- Hospitality and retail, the place AI voice assistants assist with check-ins, concierge companies, or hands-free help in shops.
Every of those verticals presents a definite monetization mannequin — from usage-based software-as-a-service contracts to per-device royalties to potential income sharing in commerce and transactions. As extra industries undertake voice AI, SoundHound’s diversified income streams may assist it scale effectively.
What it means for buyers
SoundHound AI should be at a reasonably early stage of its progress, but it surely’s quietly assembling the constructing blocks of a world voice AI empire.
If voice is certainly going to be the following main digital interface — and there are many indicators that it is going to be — SoundHound AI is an organization that buyers will wish to hold an in depth eye on.
John Mackey, former CEO of Entire Meals Market, an Amazon subsidiary, is a member of The Motley Idiot’s board of administrators. Suzanne Frey, an government at Alphabet, is a member of The Motley Idiot’s board of administrators. Lawrence Nga has no place in any of the shares talked about. The Motley Idiot has positions in and recommends Alphabet, Amazon, Apple, Nvidia, Palantir Applied sciences, and Tencent. The Motley Idiot recommends Stellantis. The Motley Idiot has a disclosure coverage.
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