Nathan Xu’s bootstrapped company has sold over one million AI-powered recording devices to busy professionals. From doctors and lawyers to executives, Plaud’s tools are making waves — and Xu is just getting started.
From Coffee Shop to Startup Stardom
On a rainy July morning in an upscale Amsterdam suburb, Nathan Xu sits in a cozy Italian coffee shop, gearing up for a packed day of meetings. He clips a slim, pill-shaped device to his shirt and politely asks to record the conversation.
With a single click, the device begins recording and transcribing everything — not just his own words, but the voices of everyone nearby. Plaud makes the device, known as the NotePin, Xu’s San Francisco- and Shenzhen-based startup.
The NotePin connects microphones to proprietary AI software, along with tools like ChatGPT, to generate searchable summaries. On a full charge, it can record up to 20 hours of conversations.
A Fast-Growing Market for AI Wearables
Since its 2023 launch, Plaud has sold over 1 million NotePins to professionals with demanding schedules. The product is one of the earliest successes in a new market: wearable AI devices that go beyond phones and laptops.
While companies like Rabbit and Humane struggled, Plaud outpaced them by offering a practical, reliable tool. New startups such as Omi, Limitless, and even Amazon (which recently acquired Bee) are now entering the space. In fact, OpenAI invested $6.4 billion to bring legendary iPhone designer Jony Ive in-house for a future AI product.
Xu sees a major shift in professional etiquette. With AI note-takers becoming common in meetings, casual conversations are increasingly recorded as well. “I now assume everything, even coffee chats, are being recorded,” says Pia d’Iribarne, cofounder of New Wave VC.
Staying Ethical with Privacy in Mind
Xu is fully aware of the privacy concerns surrounding body-worn AI recorders. He emphasizes that the NotePin is a professional tool, not a spy gadget. “We always recommend users get consent before recording,” he says.
He believes that in the next decade, everyone will own a wearable AI assistant. These devices may even surpass smartphones in popularity.
Building a Profitable Business Without Venture Capital
Unlike most AI startups, Plaud is already profitable. The $159 NotePin and its $99/year transcription plans generate serious revenue. The company is on track to hit $250 million in annualized revenue, with profit margins comparable to Apple’s 25%.
Even more impressively, Xu and his cofounder Charles Liu launched Plaud without traditional VC funding. They pooled their savings, ran a $1 million crowdfunding campaign, and retained most of the company’s ownership.
However, competition is heating up, and many are eyeing a share of the $540 billion global smartphone market with their AI gadgets.
From Failed Startups to Plaud’s Breakthrough
Xu, now 34, graduated from Wuhan University and initially pursued a career in banking. However, a course on innovation changed his path. His first startup — a college selection tool for Chinese students — failed, costing him his parents’ savings.
His next two ventures didn’t fare much better, but Xu found stability as a venture capitalist. At China Growth Capital, he backed big winners like Akulaku, now valued at $2 billion.
But by 2021, he was itching to build again. In Shenzhen, Xu noticed factories mass-producing smart recorders. He saw a gap in the international market where brands like Sony and Olympus had fallen behind.
Pivoting to AI-Powered Note-Taking
Xu and Liu first launched Izyrec, a recorder targeted at suspicious spouses. It was a surprising hit. But after ChatGPT’s debut in 2022, they pivoted to build something more mainstream and professional.
They launched Plaud with the Note, a credit card-sized recorder that stuck to a smartphone. A Kickstarter campaign brought in over $1 million. Despite being triple the price of Izyrec, it sold well because it came bundled with AI transcription and summary tools.
This combination of hardware and software gave Plaud a sustainable business model.
Strategic Focus on International Markets
Xu made a key strategic decision: Plaud would not sell in China. Competing with local giants like Huawei and Xiaomi — and facing copycats — would be too risky. “In China, you’re forced to compete on price overnight,” he explains.
Instead, Plaud targeted global professionals — especially in industries like healthcare, legal services, and sales. Recognizing the demand, they began building industry-specific templates, including tools for doctors and hospitals.
Earlier this year, Plaud acquired a San Francisco-based healthcare startup, giving them a new edge in the booming AI healthcare market. Competitors include well-funded startups like Abridge and big players like Microsoft’s Nuance.
New Product Launch and U.S. Expansion
Last week, Xu visited San Francisco to launch Plaud Note Pro, featuring a larger battery, longer recording time, and a tiny screen. He also opened a U.S. office and moved 20 employees there to focus on AI development.
Though the company still designs hardware in Shenzhen, Xu emphasizes that Plaud is an American company. It’s incorporated in Delaware and stores user data on Amazon servers in the U.S.
Dan Weirich of Carbide Ventures, one of Plaud’s few investors, says this is essential for U.S. market trust: “I want to be on the front page for a big IPO — not for using Chinese tech to record America’s conversations.”
Navigating Legal and Ethical Challenges
Despite Plaud’s business focus, there are legal concerns. States like California have strict laws against recording without consent, though they are rarely enforced.
Xu says Plaud is sticking to productivity use cases and isn’t aiming to disrupt personal spaces. “We don’t mess with life at all,” he says.
Others in the space, like Dan Siroker of Limitless, argue that concerns over recording will fade — much like early fears about smartphone cameras.
What’s Next for Plaud?
Xu has big ambitions. Around 50% of Plaud’s revenue now comes from subscription services, and he wants to build more AI tools for business productivity. His goal: raise a $500 million war chest and potentially pursue a major IPO.
Though big tech could crush Plaud with an app update or a new device, Xu is focused on building a loyal user base. He believes people will pay for a purpose-built, distraction-free tool — especially when it helps them stay on top of their workload.
In the future, he envisions ring- or earbud-style AI companions that don’t just record — they think alongside you.
