SenseTime Restructuring to Focus on Generative AI

BEIJING (Reuters) – Loss-making Chinese AI company SenseTime Group announced on Tuesday a major organizational restructuring aimed at accelerating its shift towards generative AI technologies.

Previously focused on computer vision and surveillance technologies, the Hong Kong-listed company is pivoting to generative AI following the industry's surge prompted by OpenAI's ChatGPT.

Once one of China's hottest AI firms, SenseTime has struggled to keep pace with rivals during the generative AI boom, with shares dropping 61% from their initial offering price three years ago.

In a filing to the Hong Kong stock exchange, the company expressed its intent to make generative AI its core business to enhance growth, profitability, and financial stability.

This restructuring occurs amid a decline in SenseTime's computer vision business, with the traditional AI segment experiencing a 50.6% drop in the first half of this year. The company has yet to achieve profitability since its inception a decade ago.

In early 2023, SenseTime launched its large language model, SenseNova, claiming capabilities akin to the latest version of OpenAI's GPT.

In 2021, the United States placed SenseTime on an export controls list due to allegations that it created facial-recognition software used to oppress Uyghur Muslims. The company stated these accusations were unfounded and that it was compliant with laws.

SenseTime's restructuring establishes several business units, each with separate CEOs, focusing on areas such as smart auto, domestic robotics, smart healthcare, and smart retail, as detailed in its filing.