Agora, Inc. (NASDAQ: API) announced a new partnership with Sentino on January 21 2026 to create a Physical AI Agent Platform that blends Agora’s low‑latency Conversational AI Engine with Sentino’s emotional‑AI technology. The joint platform will enable developers to build long‑term, presence‑driven AI companions for companion robots, interactive entertainment, and customer‑service devices.
The platform introduces four core capabilities: an “Agent OS” that generates inner thoughts during idle periods, an AI diary that records shared moments, a diary illustration tool that creates visual memories, and a music diary that turns memories into emotion‑driven audio. These features are designed to move AI beyond transactional interactions into sustained, emotionally resonant experiences, allowing devices to remember and react to users over time.
The partnership positions Agora to tap into the Physical AI market, projected to reach $68‑$84 billion by 2034‑2035 with a CAGR of 31‑34%. By combining Sentino’s expertise in emotional depth with Agora’s real‑time delivery network, the collaboration aims to create a differentiated offering that competitors such as Twilio and cloud giants cannot easily replicate, potentially opening new revenue streams from device makers and IP holders who seek to monetize interactive AI companions.
Agora’s recent financial performance provides context for the strategic shift. In Q1 2025, the company reported revenue of $33.3 million, up 0.9% from $33.0 million a year earlier, and a net income of $0.4 million. In Q3 2025, revenue rose 12% to $35.4 million, with a GAAP net profit of $2.7 million. The company maintains a strong cash position of $388 million as of March 31 2025, but revenue declined 5.85% in 2024 compared to 2023, reflecting headwinds in legacy segments.
Tony Wang, Agora’s Co‑founder and Chief Revenue Officer, said the partnership “is a strategic move into the next frontier of AI—presence. By combining Sentino’s emotional depth with Agora’s real‑time Conversational AI Engine, we are enabling developers to move beyond transactional interactions and build AI that connects with people in a meaningful, long‑term way.” Chris Chen, CEO of Sentino, added that the collaboration “transforms static characters into living assets, allowing IP holders to build sustainable, emotional economies with their fans.”
The partnership signals Agora’s intent to diversify beyond its core conversational‑AI business and capture a share of the rapidly expanding Physical AI market. While the announcement does not immediately impact quarterly earnings, it sets the stage for new product revenue streams and positions Agora to leverage its low‑latency network as a competitive moat against larger cloud providers.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.