Zhou Hongyi: There is no business model for pure artificial intelligence.

For Internet software, free is the best marketing tool and effective means of competition, but smart hardware products are difficult to follow the traditional free old road.

——Zhou Hongjun

Zhou Hongyi, chairman and CEO of 360 Company, said that the current hot artificial intelligence has a foam component, artificial intelligence must be combined with the industry, and pure artificial intelligence has no business model. At the same time, because the marginal cost is not fixed, it is difficult for intelligent hardware products to follow the old path of the software "free". A hardware startup that is completely unprofitable may result in the loss of the ability to continuously design new products.

Artificial intelligence must be combined with industry

Q: How do you view the artificial intelligence (AI) that has been very hot this year?

Zhou Hongyi: I went to Seattle and Silicon Valley this year to visit some companies and went to Berkeley's eight laboratories.

I feel that when I am a company, you have to say that you are using deep learning and artificial intelligence. Just two years ago, if you want to say that you are O2O, you are embarrassed to go to finance. I think this is a bubble.

Q: What do you think about the business model of the artificial intelligence industry in the United States?

Zhou Hongyi: Pure artificial intelligence has no business model. Artificial intelligence must be combined with a field and an industry.

For example, the launch of AlphaGo's DeepMind, a British company acquired by Google, is just a way for them to embody artificial intelligence. They can use this computer algorithm to do a lot of things in the future, such as using computers to manage mutual funds and investing. With a one percentage point higher than the manually managed fund, it can become the world's largest fund management company.

Question: Since artificial intelligence can do so many things, will it threaten human beings like the plot in the movie?

Zhou Hongyi: Artificial intelligence is not enough to threaten human beings. The world like the machine in Terminator destroys mankind is far away from everyone. Because today's artificial intelligence is strictly speaking, computers do not produce thinking, and it is even less likely to produce consciousness. Without consciousness, there is no emotion.

Q: So do you think today's artificial intelligence is "old bottled new wine"?

Zhou Hongyi: Today's artificial intelligence is essentially an enhancement of computer computing power, which makes the past algorithms have a great speed improvement. On the basis of big data, it is actually able to make computers produce some qualitative leap in certain fields. .

Let the computer understand the language we speak, the real man-machine dialogue is still not available, which is why Siri has been used for a while and few people have used it. So at this point, artificial intelligence, I think it will take at least five to ten years to develop in the future.

Q: You used "free" to break into the anti-virus software field, but recently you said that "free" is wrong on the Internet. Why is this change?

Zhou Hongyi: Actually, the meaning of free for different projects is different. Chris Anderson, the former editor of Wired magazine, mentioned in his book "Free: The Future of Business" that in the bit economy, free is real, free of charge includes direct cross-subsidy, tripartite market, free Plus charging mode, non-monetary market.

I don't think that the word "free" can be completely regarded as the "0" fee in the traditional sense. For Internet software, free is the best marketing tool and effective means of competition. Once you are free, the user base of competitors is rapidly losing, and revenue is rapidly shrinking, and the team will face disintegration. It is such a situation that the anti-virus software is permanently free.

From the perspective of cost, the cost of Internet software development is generally fixed, and the cost of placing it on the Internet is very low. Therefore, the larger the user base of an Internet product or service, the lower the cost of apportioning to each user. Nearly zero.

Q: What do you think of "hardware free"?

Zhou Hongyi: Many people have chanted the "free" book, and applied the free theory of software to the field of intelligent hardware. But I think that smart hardware products are hard to follow the "free" old road.

Because the marginal cost of hardware is not fixed. For example, the physical cost of hardware, logistics costs, production time costs, etc., these variable costs will increase with production, which may lead to huge losses for enterprises, especially hardware start-ups.

Therefore, if the hardware entrepreneurship does not make any money at all, the Internet model cannot be established, which will lead to the loss of the ability to continuously design new products, not to mention the innovation and originality of manufacturing. Hardware entrepreneurship still has to return to the essence of business.

Rather than 360 privatization, it is better to say "return"

Question: Why should 360 be privatized from the United States?

Zhou Hongyi: We are delisting from the New York Stock Exchange, which is financially privatized. From the perspective of corporate ownership, this is a process from a US-listed company to a 100% pure Chinese company. Therefore, I generally disapprove of the idea of ​​360 completing privatization. I prefer to call it "360 to return to China."

Q: What is the difference between the meaning behind this?

Zhou Hongyi: There are two points. First of all, 360 is not a stock in China. The so-called China stocks are the overall concept of Chinese Internet companies listed in the US since Sina.com was listed in the US in 1999. A distinctive feature of these companies is to imitate the business of American Internet companies. Mode, the US market view of these companies are calculated according to the US model + China market.

But 360's business model is original, and we have no corresponding US model based on the free security business model. So in this sense, 360 is not a member of the China Stock Exchange. Second, we set the goals and strategies for delisting very early.

Question: What is the consideration for 360 to choose to return?

Zhou Hongyi: The state attaches great importance to cyber security. Under such great efforts to grasp the construction of cyber security, we as a cyber security enterprise believe that this means that a great development era in the field of cyber security is coming, which is a commercial requirement for entrepreneurs.

However, we are a Chinese network security company listed in the US and need to adjust the structure of everyone.

Our place is determined to return to China with such great determination, and the relevant departments of the state have given us great spiritual encouragement. We believe that the return of 360 to China will not only benefit the development of the company itself, but also contribute to the national network security construction.

Q: This year's network security has been repeatedly emphasized by national leaders. What advice do you have for network security?

Zhou Hongyi: Network security has no bystanders. Building cyberspace security should be “collaborative” from multiple dimensions, including government-enterprise collaboration, enterprise-enterprise collaboration, security product data and capability collaboration.

Same question and answer

The future of China's Internet is based on artificial intelligence

Q: What is the most economic event that impressed you in 2016?

Zhou Hongyi: Go's AlphaGo defeated South Korea's top nine masters and made a popularization of artificial intelligence. But everyone has a lot of arguments about artificial intelligence.

Q: In 2017, which black technology do you most optimistic about?

Zhou Hongyi: I think the future of China's Internet is based on big data, the future based on artificial intelligence, and I believe that smart devices will be diversified.

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