Introduction: Luo Yonghao's entrepreneurial journey is akin to a thrilling rollercoaster ride. What will be the climactic conclusion of his latest AI venture?

Article by Dali Finance

Author: Wei Li

On March 10, 2025, an unassuming day saw Luo Yonghao post a job recruitment notice on Weibo. Don't underestimate this announcement; it harbors the grand ambitions of this controversial figure. His AR startup, Thin Red Line Technology, has embarked on spring recruitment, with the software department offering several positions for AI product managers. This marks a significant shift. Since the setbacks of Smartisan Technology, Luo Yonghao's entrepreneurial endeavors have resembled a documentary on the "industry curse."

He has navigated the waves of social software, e-cigarettes, and live streaming e-commerce, yet each time, after a brief period of glory, he has encountered the industry's winter.

But this time, he has pinned all his hopes on the AI and AR fields, which are not only fiercely contested territories among global tech giants but also the ultimate battleground for his proclaimed "final venture."

In 2022, when Luo Yonghao announced his venture into AR, he declared resolutely, "This should be my final venture, and I will put everything I have into it." His determination was profoundly moving. However, three years have passed, and his beloved AR glasses have stalled due to numerous technical challenges. Just when everyone thought he would abandon the project, his team quietly pivoted to the AI field.

Earlier this year, he recruited Wang Wenjun, a former top-50 employee of Xiaomi with extensive experience in operating systems, and launched the AI assistant J1 Assistant, which is currently being tested overseas. He even stated, "People who truly care about software will eventually create their own hardware."

Some view this as a strategic retreat by Luo Yonghao, while others see it as a "detour to salvation." Regardless, this idealistic entrepreneur is employing his trademark perseverance to find breakthrough opportunities amidst the obstacles of the AI era.

01 From AR to AI: A Compelled "Strategic Pivot"

In 2019, Luo Yonghao reluctantly joined the live streaming industry due to a debt crisis. Who could have predicted that in 2022, he would suddenly announce his "retirement from the internet to start a business" and establish Thin Red Line Technology, with a clear focus on "the next generation of personal computing devices." With the poignant phrase "final venture," he swiftly secured a $50 million angel round of funding, and the company's valuation soared to $200 million, attracting investments from industry titans such as Meituan Longzhu and DJI Innovation.

The company's team expanded to 150 people, brimming with energy, but the development of AR glasses was fraught with difficulties, and every step forward was exceptionally challenging. In 2023, the first prototype was unveiled, plagued with numerous issues. It was "heavy as a brick," and the software was "riddled with bugs," causing the entire system development to stagnate. A disheartened internal employee revealed, "At that time, we couldn't even make the boot animation smooth, let alone other functionalities."

Just when despair loomed, a turning point emerged at the end of 2023. With the explosive growth of large language models, particularly the advent of ChatGPT, Luo Yonghao seized the opportunity and made a decisive decision to press the "pause" button on AR research and development, instructing the team to immediately shift focus to developing AI application demos.

By early 2024, Thin Red Line Technology had set its company's development priorities on "AI Agent" and commenced recruiting large-scale model algorithm engineers to fully invest in AI research and development.

02 "AIOS" Ambition: The Ultimate Goal of Software and Hardware Integration

"Making phones alone doesn't make sense, but for AIOS..." In January of this year, Luo Yonghao quoted the renowned saying of computer pioneer Alan Kay on Weibo. This seemingly casual remark hinted at his unwavering determination to re-enter the hardware race. According to someone close to the team, his plan is to first develop an AI operating system (AIOS) and then launch AI phones, thereby forming a complete, closed ecological loop and building his own technological empire.

In January 2025, Thin Red Line Technology launched its first AI product, J1 Assistant. This voice assistant, released overseas, boasts functions such as Chatbot, to-do lists, and AI search. When people saw its interface, many chuckled because the classic "skeuomorphic" design was identical to that of the old Smartisan phones. Many netizens joked, "It's still the familiar taste, replete with the shadow of Smartisan phones."

Although Luo Yonghao confidently declared that J1 Assistant would "revolutionize interaction methods" and offer users a novel experience, the actual test feedback was less than ideal, with numerous flaws. Its context memory was poor, and the response speed was sluggish. More troublingly, it couldn't be used in China at all. Software expert Zhu Haizhou bluntly commented, "It's like cramming six Smartisan apps into one shell and barely piecing them together with AI, resulting in a poor user experience."

Some investors revealed that J1 Assistant was actually a bargaining chip launched for financing, aiming to attract more investments. However, judging from the reception of the beta version, it didn't achieve the desired results and failed to make a significant impact in the market. More crucially, the domestic App ecosystem is relatively complex, with each platform being relatively independent, making it difficult for J1 Assistant to fully leverage its capabilities. "Without its own independent operating system, it will always be at the mercy of others," Luo Yonghao's anxiety is palpable in this statement.

03 The Key to Breaking the Deadlock: Wang Wenjun and the "Race Against Time" for AIOS

On March 4, Thin Red Line Technology announced the recruitment of Wang Wenjun, causing quite a stir. Wang Wenjun is the chief architect of Xiaomi's MIUI and participated in creating Xiaomi's first smartphone, enjoying rich experience and high esteem in the industry. His joining is seen as a crucial move by Luo Yonghao to fully sprint towards AIOS research and development.

"Doing software without hardware simply won't work in the market; it won't unlock new opportunities," an industry professional analyzed. Wang Wenjun's primary task is to achieve deep collaboration between AIOS and hardware. Luo Yonghao's ultimate goal is to establish a new set of interaction standards through AIOS and then rely on AI phones to implement this standard, thereby forging his unique competitive edge.

However, developing an operating system is no mean feat; it's akin to a "gold-swallowing beast" that requires a massive investment of funds. The financing previously secured by Thin Red Line Technology has almost been exhausted, and insiders revealed, "If new financing isn't secured within a month, the AIOS research and development plan may be forced to be shelved." Even with a master like Wang Wenjun at the helm, standing out in a market dominated by giants like iOS and HarmonyOS is as challenging as riding a bicycle to chase a high-speed train.

04 Industry Curse? Luo Yonghao's "Survivor Game"

Looking back at Luo Yonghao's entrepreneurial journey, it is replete with dramatic black humor.

When he ventured into smartphones, the industry competition was already fierce, mired in brutal rivalry; when he forayed into e-cigarettes, he happened to encounter stringent policy controls, and the industry swiftly entered a winter; and when live streaming e-commerce finally achieved industry leadership, he chose to step away from the limelight. But a closer examination of his current AI field layout reveals that it might truly be different from the past.

Currently, global tech giants are vigorously investing in the integration of AI and AR. Meta's Ray-Ban smart glasses have already achieved multimodal interaction capabilities, and Apple's Vision Pro has reserved AI interfaces. If Thin Red Line Technology can successfully marry AI and AR technologies, it might be able to secure a favorable market position in the "post-smartphone era" and obtain development opportunities.

"Beauty is just the basics." When a fan inquired about the appearance of the AI phone, Luo Yonghao confidently gave such a domineering response, as always. His relentless pursuit of product aesthetics once attracted a large number of loyal fans for Smartisan phones. Now, this unique product philosophy might also become a distinct label that differentiates AIOS from other products, helping it capture market share.

However, the reality remains grim. J1 Assistant has yet to demonstrate robust technical prowess and hasn't been fully embraced by the market, while the development of AIOS will take at least 3-5 years. During this period, it remains uncertain whether the capital market will maintain its patience with Luo Yonghao. After all, in the business world, time is money, and every extra day signifies an additional risk.

Conclusion: The "Don Quixote" of the AI Era

Luo Yonghao's entrepreneurial journey in the AI field resembles a modern retelling of "The Battle of Don Quixote." He faces insurmountable technical barriers, the indifference of the capital market, and the persistent "industry curse" that he has been unable to shake off. All he has to fight with is his idealistic "lance."

However, from another perspective, this seemingly "foolish" romanticism is precisely what is scarce in the current technology industry. When others are chasing short-term windfall profits, he insists on "making hardware for AIOS"; when industry giants have monopolized most of the market ecology, he is still attempting to carve a niche in this seemingly impenetrable market with AIOS. Although J1 Assistant still has many issues now, it at least proves that he has been forging ahead without relent.

Dali Finance believes that the tragic sense brought about by "fighting with one's back to the wall" might be Luo Yonghao's greatest advantage in this venture. If he succeeds this time, he will be a hero who defies fate; if he fails, his experience will still be a fascinating case study in business history.

In the long river of history, rewards are often bestowed upon those who persevere and are consumed by obsession, even if it's just once. We eagerly anticipate the moment when Luo Yonghao can break the curse of the "industry curse" and carve his own glory in the AI era.

Can Luo Yonghao win the bet? Fans, will you believe in Luo Yonghao again?