Amid increasing geopolitical tensions, numerous Chinese tech companies are rethinking their international strategies, often avoiding any direct mention of their heritage. One notable exception is DP Technology, a vibrant startup focused on integrating artificial intelligence with molecular simulations. DP, short for "Deep Potential," aims to leverage the collective force of "scientific research for humanity" as a catalyst for its global growth.
Founded in 2018 with the esteemed mathematician Weinan E as an advisor, DP offers a suite of tools for scientific computing. This process involves utilizing computer simulations of mathematical models that are crucial for technological development and scientific inquiry, as defined by the University of Waterloo. Scientific computing has applications across various fields, including biopharmaceuticals, automotive design, and semiconductor innovation.
While the tech world zeroes in on AI for generating text, images, and videos, DP is delving into a lesser-explored domain: merging machine learning, which enables computers to learn autonomously from data, with molecular simulations that investigate real-world products through virtual modeling. This combination enhances the speed and precision of simulations, addressing real-world challenges effectively.
"In the past, without sophisticated computing or AI platforms, we relied heavily on experiential trial and error, a process often referred to as ‘cooking’ or ‘alchemy,’" DP's CEO and founder, Sun Weijie, shared in an interview. "This method was adequate in the early industrial stages when expectations for iterations were lower, but the demand for technological advancements is now soaring. For example, consumers anticipate increased battery capacities each year and improved vehicle performance with every new model. The traditional research and development model can no longer keep pace with these rapid market shifts."
"A breakthrough in our R&D approach is crucial to meet the expectations of quick iterations," he emphasized.
To address this, DP has developed a comprehensive software suite that enables industry players to streamline product discovery and development. One core offering is its scientific computing platform, which facilitates simulations of various physical properties like magnetism, optics, and electricity. The insights generated from these models allow for faster and more cost-effective design processes for materials such as semiconductors and batteries. Additionally, DP runs a SaaS platform tailored for preclinical studies in drug discovery.
Beyond providing software tools, DP distinguishes itself by offering bespoke services and conducting R&D for clients who may not fully utilize their resources. This blend of SaaS and service-oriented business models has gained early traction in China. In 2023, DP is projected to secure approximately 100 million yuan ($14 million) in contracts, a significant increase from “tens of millions of yuan” last year. The startup is now setting its sights on expanding into Western markets, where established giants like DeepMind dominate.
"We have an old adage in China: The children from poorer backgrounds grow up fast. With lesser funding, we are the underdogs compared to DeepMind and OpenAI," Sun remarked.
To date, DP has raised about $140 million from leading Chinese venture capital firms, including Qiming Venture Partners and Source Code Capital. For context, the 13-year-old DeepMind was acquired by Google for over $500 million in 2014 and reported a profit of £44 million ($60 million) in 2020, recovering from a substantial loss of £477 million ($650 million) in 2019.
Despite its headquarters being in Beijing, Sun insists that DP was built with a global perspective, rooted in an open-source scientific computing community it founded, called DeepModeling. The startup's early positioning in China was more of a necessity than a strategy. “The COVID-19 pandemic halted international exchange, prompting us to focus on monetization within China in our initial two years,” he explained.
DP's international growth strategy commenced with the U.S. market, where it plans to establish an office and collaborate with partners to distribute its products and services. To enhance its presence, the startup aims to boost its reputation by utilizing its open-source community and engaging in trade shows within a relatively "close-knit circle" of basic research.
However, DP's aspirations may face challenges due to the ongoing U.S.-China decoupling, which is affecting various sectors, including scientific research. In August, for example, the Biden administration narrowly extended a science partnership that has underpinned U.S.-China relations since 1979.
Nevertheless, Sun remains optimistic about science's resilience amid geopolitical tensions. "Fields like basic science and biopharmaceuticals belong to humanity and are comparatively open and inclusive. I believe these sectors will continue to thrive," he stated.
Ranking
