China's SenseTime reshapes to focus on generative AI growth (updated)

SenseTime

04/12/2024 03:00

(Recasts; adds backgound and details from company's filing)
       BEIJING, Dec 4 (Reuters) - Loss-making Chinese AI
company SenseTime Group  0020.HK  said on Tuesday it has
completed a major organizational restructuring aimed at ramping
up its shift toward generative AI technologies.
    The Hong Kong-listed company, previously focused on computer
vision and surveillance technologies, has accelerated its
transformation into generative AI following the industry-wide
surge triggered by OpenAI's ChatGPT.
    SenseTime was one of China's hottest AI firms but has fallen
behind rivals amid the generative AI boom. Its shares have
dropped 61% from their issue price three years ago. 
    The company wants to make generative AI its core business to
drive growth, profitability and financial soundness, it said in
a filing to the Hong Kong stock exchange.
    The restructuring comes as SenseTime's computer vision
business declines, with its "traditional AI" segment down 50.6%
in the first half of this year. The company has yet to turn a
profit since its founding a decade ago.
    SenseTime launched its large language model, SenseNova, in
early 2023, claiming capabilities comparable to OpenAI's latest
GPT version. 
    In 2021, the United States put SenseTime on an export
controls list alleging it had created facial-recognition
software used to oppress Uyghur Muslims. The company said at the
time the accusation was unfounded and that it was compliant with
laws.
    SenseTime's restructuring sets up several business units,
with separate CEOs, including for smart auto, domestic robotics,
smart healthcare, and smart retail, the company said in its
filing.
    

 (Reporting by Liam Mo and Joe Cash; Editing by Himani Sarkar
and Sonali Paul)
 ((Joe.Cash@thomsonreuters.com;))