SenseTime signed smart car deal with Guangdong Automobile Group
SenseTime, one of China’s leading AI companies, and Guangdong Automobile Group(GAC) have announced their strategic cooperation agreement sealed recently. The two will collaborate in terms of R&D and application innovation in the fields of intelligent driving, intelligent car cabin, intelligent network connection, automobile metaverse, AI toolchain, supercomputing center, and more.
SenseAuto, the intelligent automotive application platform, is one of SenseTime’s key products and services. Several smart car models resulting from SenseAuto’s cooperation with GAC Chuanqi and GAC Ean will be launched for mass production by next year, according to China Securities Journal.
SenseAuto has accumulated over 30 automotive industry customers and over 50 partners in the smart car industry. More than 60 models and 27 million vehicles equipped with SenseAuto products will be introduced to the market in the next five years.
GAC is the fifth largest automobile manufacturer in China, with 2.144 million sales in 2021. In addition to developing EVs and smart vehicles, the carmaker has recently entered the flying car industry, joining existing players XPeng and Geely.
AI company SenseTime is often referred to as one of China’s four AI dragons, which implies its prominence in the industry. Like many other AI companies, SenseTime has been long under scrutiny due to its profitability. With its large and ever-increasing R&D expenditure, the 8 years old company has yet to make a profit and incurred losses of 4.96 billion yuan in 2019, 12.16 billion yuan in 2020, and 17.14 billion yuan in 2021, respectively.
The company has also been caught in the turbulence of the deteriorating China-US relations. The US has banned American funds from investing in SenseTime, along with several other China tech companies.
To keep investors’ panic at bay, the company has bought back HKD 14 million worth of its own stocks this month, after the lock-up period for almost 70 percent of the company’s restricted shares expired, and its shares dropped 47%.