AI start-up Fourth Paradigm, formed by Huawei veterans, becomes China’s latest unicorn

  • Start-up’s main service provides tools for banks to detect fraud, identify customers and perform other analysis

A worker holds a sign promoting a sale for Huawei’s 5G internet services at a mobile phone retail shop in Shenzhen in south China's Guangdong province, Tuesday, Dec 18, 2018. Photo: AP

Fourth Paradigm is the latest Chinese start-up to net a valuation north of US$1 billion. Founded just three years ago by Huawei Technologies veterans, the Beijing start-up is fast winning favour among state-backed banks preparing a plunge into artificial intelligence.

The start-up – known also as 4Paradigm – said in a statement it’s scored more than US$150 million of funding at a valuation of about US$1.2 billion. With that financing, its investors and paying customers now include four of China’s five largest banks: a major boost for a little-known outfit hoping to compete with the likes of Alibaba Group Holding and Ant Financial in the massive undertaking of wrenching a state-dominated US$37 trillion banking arena into the digital age.

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