German AI translation startup DeepL has introduced traditional Chinese as a new language option, expanding its presence in Asia. DeepL, valued at $2 billion, offers translation software tailored for businesses rather than everyday consumers.
Traditional Chinese, used in Taiwan and Hong Kong, is significant as both locations are major business hubs for technology and finance. This strategic move aims to cater to these markets. DeepL’s CEO, Jaroslaw “Jarek” Kutylowski, highlighted that Taiwan and Hong Kong are “strong technological markets” with substantial exports, especially Taiwan, home to the world’s largest chipmaker, TSMC.
This launch is not DeepL’s first venture into Asia. The company, headquartered in Cologne, Germany, already supports Japanese and Korean languages on its platform. Kutylowski noted similarities between the Taiwanese market and other successful Asian markets like Japan and Korea. Initially, the traditional Chinese business will be managed from Japan, with plans to consider a physical presence in Taiwan or Hong Kong in the future.
Recently, DeepL unveiled its next-generation large language model (LLM), claiming superior translation quality compared to the latest versions of ChatGPT, Google, and Microsoft. An LLM, trained on vast amounts of data, underpins DeepL’s translation software. Backed by prominent venture funds, including Mark Zuckerberg’s ICONIQ Growth and Index Ventures, DeepL is positioned as a competitor to Google Translate, focusing primarily on corporate clients.
DeepL aims to enhance its language offerings, now totaling 33 languages, to support global business communication. The introduction of traditional Chinese aims to facilitate better communication for international clients or employees in Taiwan and Hong Kong. The company also seeks to attract businesses from regions looking to expand internationally.
While DeepL already offers simplified Chinese for mainland China, it does not conduct business with mainland Chinese companies. By launching traditional Chinese, DeepL aims to compete with major Chinese tech players like Baidu and Tencent, which have their own translation tools. Kutylowski emphasized DeepL’s advantage in providing accurate translations for numerous languages, enabling businesses in Hong Kong and Taiwan to communicate globally. He stated that Asia will remain a key focus for DeepL in the coming months, with plans to introduce additional Asian languages.
Currently, DeepL’s products focus on written language translation, but the company is developing a spoken language translation product, with Kutylowski confirming its importance in their strategy for Asia, although a launch timeline was not provided. He mentioned that spoken language translation is expected to become a significant revenue stream for the company.
