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At Consensus Hong Kong, we recently had the opportunity to sit down with Nils Pihl, Founder & CEO of Auki Labs. In our conversation, Nils shared insights into his journey and the thoughtful approach behind building his company.
In this feature of our interview and startup stories series, we're going behind the scenes into the experiences and lessons learned along the entrepreneurial journey. Nils shared with us how he came to the idea to begin Auki Labs, the milestones he achieved along the way, and the highs and lows of team building in the fast-paced tech world.
This interview presents an unvarnished glimpse of what it's actually like to make an idea become a viable business, without all the hype.
The Inception of Auki Labs
Auki Labs was born out of a realization that digital devices struggle to understand and interact with the physical world. While advancements in augmented reality (AR) and artificial intelligence (AI) have made significant progress, the underlying challenge of accurate spatial computing remains.
Nils Pihl, Founder & CEO of Auki Labs, first encountered this problem in 2019 when trying to create shared AR overlays for the tabletop game Warhammer.
“I quickly realized that the state of spatial computing was quite lacking. Simply put, digital devices have a very poor understanding of the physical world and their place in it,” Pihl shared.
This challenge led to the development of Auki Labs’ core technology—a decentralized machine perception network designed to improve spatial awareness for XR devices, robots, and AI.
Unlike traditional centralized systems, which often rely on extensive data collection and cloud-based processing, Auki Labs’ approach allows digital systems to function more effectively while preserving user privacy.
The company’s work has broad implications, from enhancing AR experiences to enabling smart navigation and AI-driven automation in physical spaces. By tackling the limitations of current spatial computing methods, Auki Labs is not just addressing a technical gap but also redefining how digital and physical environments coexist.
Decentralization, Privacy, and Growth
In the growing field of spatial computing, Auki Labs stands out with its decentralized ownership and data privacy. Unlike its competitors that use central models, Auki Labs offers venues with sole data ownership and yet benefits from an interoperable network.
“Letting the participating venues remain in complete control of their data through self-hosting while still being part of an interoperable protocol is a complete game-changer when it comes to spatial computing,” says Nils Pihl.
He points out that even Web3 competitors often fall into the trap of centralization, using token incentives to mask large-scale data collection.
“Auki’s product is not only technically superior, but more ethical and privacy-preserving,” he adds.
This distinct approach has garnered significant traction, with hundreds of community-run nodes powering Auki Labs’ network and a large-scale rollout underway across thousands of retail locations. Pihl has also emphasized that beyond the technology, the strength of their community has been key to the company’s expansion.
“Rolling out in over 1000 locations this year, with hundreds of community nodes helping power the network, has put us on track to hopefully break 10m USD in annual recurring revenue this year,” Pihl shares.
Not to mention, if achieved, this would position Auki Labs among the highest-earning DePIN companies globally.
Additionally, investor confidence has also fueled Auki Labs’ growth. The company has secured over $20 million in funding, with 75% allocated to research and development. Notable backers include Outlier Ventures, Kenetic, Escape Velocity, and Tribe Capital.
Bridging the Physical and Digital Worlds
Headquartered in Hong Kong, Auki Labs is not just building a product—it’s shaping the future of how digital intelligence interacts with the physical world. In the short term, the company is focused on practical applications, particularly in helping physical businesses integrate AI and spatial computing.
Retailers and other brick-and-mortar establishments stand to benefit from the technology, enabling seamless interactions between digital systems and the real world.
But the long-term vision is far more ambitious.
“We want to build civilization-scale infrastructure that makes the physical world accessible to AI, XR, and robots—you can think of it as the massively distributed and decentralized nervous system of AI,” says Pihl.
This vision extends beyond AR applications, aiming to redefine how machines perceive and operate in physical space.
This grand mission is deeply embedded in Auki Labs’ company culture. Pihl describes the company as a "memetic engineering" organization—one that not only develops technology but also crafts narratives that drive its adoption.
“We are building technology that helps us communicate more clearly with each other and with machines, but we also think that spreading the right memes to support your technology is an important part of the mission,” he explains.
By focusing on both the technical and cultural aspects of innovation, Auki Labs is positioning itself as a pioneer in decentralized spatial computing. As the company scales, its challenge will be not only to advance its technology but also to shift the broader conversation around privacy, decentralization, and the future of AI-driven spatial intelligence.
Pihl’s Advice for Entrepreneurs
Building a startup is rarely a straight path, and for Pihl, one of the toughest lessons came from scaling too quickly. At one point, Auki Labs had a 60-person team, but the rapid expansion proved unsustainable.
“We were very ambitious and enthusiastic and grew faster than our culture could sustain,” Pihl admits.
Eventually, the company made the difficult decision to streamline its team down to 30—a move that, in hindsight, improved efficiency and focus.
The experience underscored the importance of sustainable growth. Hiring too fast without proper onboarding led to cultural misalignment, making it difficult to maintain the company’s agility. Pihl emphasizes that scaling a team isn’t just about adding talent—it’s about ensuring that each hire truly fits the company’s long-term vision.
For aspiring entrepreneurs, his advice is simple but crucial:
“Be very picky and careful with your hiring. It’s easy to get greedy and try to push the gas too fast, but slow is smooth and smooth is fast.”
In an industry where speed often feels like the ultimate advantage, Pihl’s perspective is a reminder that thoughtful, deliberate growth can ultimately lead to stronger, more resilient businesses.
As Auki Labs continues its journey, this philosophy remains central to how the company operates—focusing on precision, efficiency, and a team that truly aligns with its mission.
Edited by Harshajit Sarmah
