The worldwide cloud platform service supplier is taking intensive steps to include AI into instruments for its builders and the {hardware} and apps they create
Key Takeaways:
- Tuya stated about 93% of the merchandise shipped to be used on its developer platform had been geared up with AI capabilities on the finish of June
- The corporate has developed a two-pronged technique of utilizing AI to help its builders, and to enhance their merchandise related to its platform
Because the world prices into the unreal intelligence (AI) period, world cloud platform service supplier Tuya Inc. TUYA is adapting to a brand new actuality that acknowledges the central position AI will play in cutting-edge, internet-connected units of the longer term. The corporate talked up its rising concentrate on the newer synthetic intelligence of issues (AIoT) in its newest earnings report, highlighting the way it’s utilizing AI to help its builders.
Tuya gave its AI pep speak because it reported continued progress for its monetary well being. The corporate reported its income rose 14.7% within the first half of this yr to $155 million, up from $135 million within the year-ago interval.
Income from its core platform-as-a-service (PaaS) enterprise, which makes up about two-thirds of the overall, rose by an analogous 12% to $112 million from about $100 million a yr earlier. Its premium PaaS prospects, which account for almost 90% of PaaS income, rose to 285 within the 12 months to June from 280 within the earlier 12-month interval.
The corporate’s working margin for the primary half of 2025 was almost breakeven, representing an enormous enchancment year-on-year, exhibiting it’s on the cusp of turning into worthwhile on a GAAP working foundation. The corporate is already worthwhile and has comparatively stable margins on a non-GAAP working foundation, which excludes bills like stock-based compensation prices.
On the underside line, Tuya reported a internet revenue of $23.6 million for the primary half of the yr, reversing a $400,000 loss a yr earlier, making it probably the corporate will submit a file revenue for 2025 after first turning into worthwhile final yr. It additionally cautioned that U.S. tariffs are creating uncertainties for a few of its purchasers however forecast these pressures ought to ease within the fourth quarter because the state of affairs begins to settle.
Tuya’s core enterprise revolves round its PaaS, which hosts a variety of apps, lots of these related to real-world units like house home equipment, toys, house security programs and even birdfeeders. Such units use real-time internet connections, more and more with the assistance of AI, to do issues like permitting toys to work together with youngsters in actual time, or enable home-based security programs to determine actions in and round a home and warn if they appear suspicious. And the corporate is more and more targeted on AIoT, as extra of the apps and units utilizing its platform reap the benefits of AI to include more and more refined capabilities.
Rising AI penetration
In keeping with a report by World Market Insights, the worldwide AI {hardware} market is anticipated to achieve about $296.3 billion by 2034, rising 18% yearly from 2025 to 2034. That robust progress is being pushed by the growing adoption of AI into {hardware}, a development that’s anticipated to speed up.
In the meantime, Tuya Sensible said that about 93% of the merchandise deployed by its platform had been geared up with AI capabilities on the finish of June. Moreover, Tuya’s developer platform delivered AI agent providers that supported 150 million AI interactions per day globally, masking areas akin to translation, healthcare, power administration, pet care, toys and AI robotics.
The corporate has two foremost focuses with regards to AI, stated Tuya Sensible co-founder, CFO and COO Alex Yang. The primary is making its instruments simpler to make use of for its large base of builders, which it’s doing by means of its self-developed AI agent growth platform.
Second, however equally vital, Tuya helps its builders to include extra AI into their {hardware} and purposes to enhance their efficiency and commercialize extra shortly. For instance, it permits builders to combine well-liked fashions like ChatGPT, DeepSeek, Qwen and Gemini into their merchandise, permitting for features like textual content and picture era.
“Tuya has all the time been on the forefront of AI {hardware} and software deployment, and we stay absolutely dedicated to advancing the AIoT ecosystem,” Yang stated on Tuya’s earnings name. “Our objective is to repeatedly decrease the event threshold for AI {hardware} merchandise and promote their broader AI innovation and adoption.”
Strengthening the AI Ecosystem
As of June, Tuya’s registered developer base spanned 200 international locations and areas, totaling over 1.51 million, up roughly 15% from 1.32 million on the finish of 2024.
To additional broaden its developer ecosystem, Tuya has lowered limitations to entry by means of its AI developer platform. The initiative consists of TuyaOpen, the corporate’s open-source growth framework that helps mainstream open-source software program and {hardware} ecosystems, enabling builders to port and deploy tasks to chips or growth boards.
Past inside efforts, Tuya has additionally been constructing ties with exterior developer communities, internet hosting on-line and offline “hackathons” to drive AI adoption. Within the first half of 2025, such occasions produced a whole bunch of AI {hardware} prototypes with business potential. It cited the Otto Robotic undertaking as a standout amongst such occasions, utilizing brokers in advertising and promotion whereas using Tuya’s T5 growth board. Tuya additionally partnered with the DFRobot group to introduce AI {hardware} growth into college and embedded programs programs, giving college students hands-on expertise with AI purposes.
The corporate is intensifying its AI co-development efforts, actively searching for high-potential AI {hardware} investments to convey promising tasks to market.
Benzinga Disclaimer: This text is from an unpaid exterior contributor. It doesn’t symbolize Benzinga’s reporting and has not been edited for content material or accuracy.
