The AI Notetaker Startup Plaud is rewriting the rules of artificial intelligence entrepreneurship. At a time when most AI companies are burning cash, Plaud stands out as one of the few profitable ventures. Founded by Nathan Xu, the company has already sold more than one million of its NotePin recording devices, giving busy professionals a way to capture, transcribe, and summarize meetings with ease.
On a rainy morning in Amsterdam, Xu demonstrated the sleek, pill-sized NotePin clipped to his shirt. With a single click, the device recorded every word, created live transcripts, and summarized conversations using AI models such as ChatGPT. It can store up to 20 hours of audio, transforming it into searchable notes for doctors, lawyers, and executives who often juggle packed schedules.
A Rising Player in AI Wearables
Plaud launched the NotePin in 2023 after a successful $1 million crowdfunding campaign. Unlike other AI gadgets that overpromised and underdelivered, the device found a ready market. With an international focus, Plaud quickly became a pioneer in moving AI tools from smartphones and laptops to wearable hardware.
The startup now generates revenue from both hardware sales—each NotePin sells for $159—and subscription transcription plans that start at $99 per year. Together, these streams are expected to bring in $250 million in annualized revenue in 2025, with profit margins close to Apple’s 25% benchmark.
Nathan Xu’s Entrepreneurial Journey
Xu’s path to becoming a profitable AI Notetaker Startup founder was not straightforward. A graduate of Wuhan University, he initially pursued banking before a course on innovation inspired him to build startups. His first three attempts failed, draining personal funds. Later, as a venture capitalist at China Growth Capital, Xu backed successful companies like Indonesia’s Akulaku.
By 2021, he returned to building his own business. Partnering with Shenzhen factory owner Charles Liu, he launched a small smart recorder called Izyrec. Although it performed well, the rise of generative AI after 2022 convinced the duo to create a more ambitious project. That decision led to Plaud, a brand that combined sleek hardware with powerful AI transcription services.
Competition, Privacy, and the Future of AI
Plaud’s growth comes at a time when AI is rapidly changing the gaming, tech, and business sectors. Investors have poured billions into startups like Omi and Limitless, while tech giants such as Amazon and OpenAI are racing to launch their own devices.
However, the AI Notetaker Startup faces challenges. Most of Plaud’s stored Bitcoin from mining operations is tied up in equipment financing, and privacy concerns around always-on recording devices remain. States like California enforce strict consent laws for conversations, raising questions about compliance. Xu emphasizes that Plaud is focused on professional productivity, not surveillance.
Despite risks, Xu remains optimistic. Plaud has already opened an office in San Francisco, hired top engineers, and built a 200-member team split between Shenzhen and Silicon Valley. About half of the company’s revenue now comes from AI subscription services, giving it a recurring revenue base. Xu believes this model gives Plaud an advantage over hardware-only rivals.
As competition heats up, Xu is preparing to raise a $500 million war chest to secure Plaud’s position in the booming wearable AI market. “In the next decade, every person will own a wearable AI device,” he predicts. “It will be even bigger than smartphones.”
For now, Plaud is thriving where many others have stumbled, proving that with the right mix of hardware innovation and AI software, a small company can scale into a profitable AI Notetaker Startup—and perhaps become the next tech giant.
