Plaud, a San Francisco-based artificial intelligence startup, is planning to file for an initial public offering (IPO) in the United States in 2028, according to co-founder and Chief Executive Nathan Xu. The company expects to pursue the IPO once its annual revenue surpasses $1 billion.

Founded in 2022, Plaud has rapidly expanded its customer base and revenue. It currently serves more than 2.5 million users across over 170 countries and projects global sales of $500 million for the current year. The company recently reached $100 million in annual recurring revenue and is reportedly highly profitable. As of last year, Plaud was valued at over $1 billion.

Plaud develops AI-powered note-taking hardware and software, including the Plaud Note, a device that attaches to smartphones to record, transcribe, and summarize phone conversations. Xu cited personal frustrations with managing ideas and details during calls as a motivation for creating the company.

The firm designs and engineers its products in-house but relies on external suppliers for key components, such as chips from Taiwanese semiconductor company Realtek. Assembly takes place in Shenzhen, China. Plaud employs approximately 400 people, with around 300 based in China and 100 in San Francisco, alongside operations in Europe, Japan, and Southeast Asia. The U.S. and European markets represent about two-thirds of the company’s business.

Vertex Holdings, a venture-capital firm and the largest investor in Plaud, is a wholly owned subsidiary of Singapore’s state investment company Temasek Holdings. Vertex operates a global network of funds under the Vertex Ventures brand and has previously invested in companies such as Chinese robotics firm Unitree and Southeast Asian technology platform Grab.

Xu indicated that Plaud’s acquisition strategy focuses on acquiring companies with strong talent and specialized capabilities that the startup cannot quickly develop internally, rather than pursuing acquisitions primarily to increase user numbers or product offerings.