SenseTime, the Chinese AI giant blacklisted by Trump, sees demand surge during coronavirus

The Hong Kong-based start-up’s 2020 sales are projected to reach US$1.3 billion, up 80 per cent from a year ago

The company is close to completing a US$1.5 billion funding round that values it at about US$8.5 billion

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Published: 6:41am, 19 Aug 2020Updated: 3:32pm, 20 Aug 2020

The future of China’s largest artificial intelligence company was thrown into question last year when it was blacklisted by the Trump administration. Today, SenseTime Group is thriving with growing demand for its facial recognition software, especially as local governments in China adopt its technology to battle the coronavirus.

The Hong Kong-based start-up’s revenue surged 147 per cent to 5 billion yuan (US$720 million) in 2019 and its customer base increased by about 500 to 1,200 clients, according to co-founder Xu Bing. Sales are on track to climb 80 per cent this year to about 9 billion yuan and gross profit could double, according to people familiar with the matter.

“We see business demand for ways to mitigate the virus outbreak on the rise,” Xu said in a phone interview. He and SenseTime declined to comment on revenue projections in an emailed statement.

That momentum has SenseTime contemplating an initial public offering.

The company is close to completing a US$1.5 billion funding round that values it at about US$8.5 billion pre-money, paving the way for a stock sale, people familiar have said.

SenseTime – whose backers include SoftBank Group Corp, Temasek Holdings and Alibaba Group Holding – is leaning toward a dual listing in Hong Kong and China, the people added. Alibaba is the parent company of the South China Morning Post.

SenseTime Group helped develop the facial recognition system used on the subway in Harbin, capital of northeastern Heilongjiang province. Photo: Handout

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