Tuya = China Stock + AI. A Winning Formula?
China stocks are hot. AI is hot. What if you put both together?
This is where Tuya comes in. It calls itself an AIoT platform. Jargon aside, it essentially makes everyday devices "smart." Imagine you have a regular light bulb, fan, or coffee maker. Normally, you have to turn them on and off manually. Tuya provides the technology that allows these devices to connect to the internet, so you can control them from your phone, through voice assistants like Alexa, or even automate their functions (e.g., lights turning on at sunset).
Use Cases
For example, Tuya powers a smart light bulb with a full-color range, adjustable via your mobile phone or voice control through Apple HomeKit, Siri, Amazon Alexa, and Google Assistant.
Another example is a seemingly ordinary badminton racket equipped with sensors that collect and transmit data to your phone. It records swing speed, swing strength, exercise calories, historical movement data, and even allows you to share this information with your social circle.
You get the point: many devices can become smart via Tuya, enabling digital connectivity, remote control, and data tracking. While Tuya is primarily an IoT company, AI integration is a natural evolution. Just like Amazon’s recent introduction of Alexa+, which uses AI to engage in more human-like conversations, understand emotional tones, and manage tasks, Tuya could incorporate AI models to enhance user recommendations and automate device control.
Business Model
It is important to note that Tuya does not manufacture products. Instead, it provides manufacturers with a ready-made platform, including software and cloud services, enabling them to turn their products into smart devices without building everything from scratch. Essentially, Tuya acts as the behind-the-scenes "brain" that powers many smart home and IoT products.
Tuya collaborates with a diverse range of clients, including multinational brands, regional brands, original design manufacturers (ODMs), and system integrators. Notable partners include Schneider Electric, Lenovo, and Philips. Rather than competing with device makers, Tuya complements them by making it easier to develop smart devices. As of December 31, 2024, Tuya's premium customers numbered 298, accounting for approximately 87.3% of its IoT PaaS revenue.