Summary of Key Points
This interview is an in-depth conversation with Wang Xiao, the founder of Nine Partners Capital, focusing on his 15 years of early-stage investment experience. From betting on Momenta (autonomous driving) 10 years ago to his current focus on embodied intelligence (robots), he has consistently adhered to a long-term perspective, valuing technological trends, the “spiritual drive” of founders, and the unity of social and commercial value of projects. He also shares his methods for assessing entrepreneurs, his philosophical thoughts on the future of AI, and how his personal growth (from running a small shop to becoming one of Baidu’s top investors) has shaped his investment philosophy.
I. From Autonomous Driving to Embodied Intelligence: A Long-Term Investment Logic with Technological Sensitivity
Wang Xiao’s investment approach revolves around “major technological trends” and a “long enough time frame”:
- The 10-Year Investment in Momenta: He invested in Momenta just two days after its establishment, betting on the potential of autonomous driving and the founder Cao Xudong’s strong execution and practical approach. Now that Momenta has gone public as the first stock in the “physical AI” sector, his judgment has been validated—technological implementation takes time, but if the direction is right, one can wait patiently.
- The Bet on Embodied Intelligence: Three years ago (during the pandemic), he began investing in robots, believing that their integration into households was a long-term goal. He focused on the core components: the “brain” of the robots and industrial applications (such as those used by Foxconn). He sees the embodied intelligence market as vast, with billions of people potentially leading to billions of robots being deployed, and believes that China and the United States are on equal footing in this technology race, with clear winners emerging within the next five years.
- Why Not Invest in Large Models?: He argues that large models are primarily for large companies (which require substantial computing power) and that their valuations are unfavorable in the early stages of development. He prefers to invest in technologies with concrete applications rather than purely conceptual ideas.
II. Methods for Assessing Entrepreneurs: Observing the “Environment” and Critical Decisions
Having met thousands of entrepreneurs, Wang Xiao has identified two key factors:
1. The Environment: A person’s background and experiences influence their behavior. For example, working at a counter in his family’s small shop taught him to observe human interactions, which is valuable for assessing potential investors.
2. Critical Decisions: Important decisions made by founders (such as how they allocate equity or direction the business takes) reveal their underlying values. For instance, if a founder only offers 1% of the company, it indicates a lack of willingness to share resources; decisive individuals are more likely to succeed.
- **Avoiding the “Halo Effect”: He avoids relying on the reputation of professors or large companies and prefers young talents with high potential, as they tend to be more motivated and capable of handling challenging tasks.
III. Investment Values: The Unity of Social and Commercial Value
Wang Xiao believes that only projects with significant social value have the potential for great commercial success:
- For example, he invested in Qingyun Technology to help reduce energy consumption and in Momenta to improve driving safety. He sees the value of AI models in making knowledge more accessible to everyone.
- He refuses to invest in projects with only commercial value and negative social implications (such as those related to gambling, prostitution, or drugs), as they will eventually be phased out by society.
- His vision for the future: If robots and clean energy become widespread, material wealth may increase, leading to a society where people can pursue personal growth (in areas like art and sports) rather than working just for survival.
IV. Philosophical Thoughts on AI: Will Silicon-Based Life Develop Consciousness?
Wang Xiao is currently studying Heidegger’s “Being and Time” to explore whether machines can develop consciousness:
- He believes that the emergent capabilities of large models already show signs of intelligence. If robots are equipped with senses and memory systems, they could develop a form of self-awareness, though different from human consciousness.
- He has used AI to analyze Heidegger’s work and discovered that silicon-based intelligence may require its own philosophical framework.
- He emphasizes the importance of cultivating critical thinking skills rather than simply memorizing knowledge, as learning is about understanding the world.
V. Personal Growth: From a Small Shop to Nine Partners Capital
Wang Xiao’s personal experiences have shaped his investment style:
- Early Learning: Working at a small shop from the age of six taught him observation and mental arithmetic, nurturing his business acumen.
- Baidu’s Impact: His time at Baidu helped him understand the importance of being part of a growing trend and realize that platform success does not necessarily equate to personal success.
- Nine Partners Capital’s Focus: The firm does not aim for large scale; instead, it invests in innovative projects (such as brain-computer interfaces and fusion energy) at its own pace. Financial freedom gives him the freedom to invest in what he truly believes in.
Conclusion
Wang Xiao is an investor with a calm demeanor but a passionate spirit. He uses a long-term approach to counter short-term anxieties, evaluates projects based on their social impact, and identifies reliable founders through careful assessment. His story highlights that investing is about combining trends, people, and time—if the direction is right, waiting 10 years is not a problem.