AI system company SenseTime filed for an initial public offering in Hong Kong last Friday.
China’s most prominent largest artificial intelligence firm did not release the details of its IPO but will still pursue the listing amid China’s tightened regulations on the tech industry.
SenseTime started in Hongkong last October 2014, which it extended its offices across China, Singapore, Japan, Abu Dhabi, and the United States.
The tech company profits from its AI software platforms that include facial recognition and autonomous driving technology.
China extensively utilizes SenseTime’s algorithms for public security and surveillance applications, generating 30% of the company profits.
SenseTime looks forward to the further amendments of China’s laws and regulations in privacy and data protection, comprising new guidelines for cybersecurity evaluations.
It initiated the IPO after it was blacklisted alongside other Chinese tech gainers by the Trump administration in 2019. This unfortunate move prevented the said firms from purchasing American supplies.
The United States accused the SenseTime and other 27 companies of alleged human rights abused to Uygur Muslims in China’s Xinjiang Uygur autonomous region,
SenseTime refused all the allegations, and the company said it stands by all laws and regulations. The firms ensured that its operations and development of AI observes the code of ethics.
Recently, China employed sweeping adjustments that added weights to companies that hold data of 1 million or more Chinese consumers.
SenseTime has a current value of $8 billion with more than 2,400 customers in its software platforms. The company also holds more than 8,000 AI patents and patent applications.
Last year, its revenue rose 13.9% to 3.45 billion yuan, while its investors include SoftBank Group Corp, Temasek Holdings, and Alibaba Group Holding.
Alibaba Squeezed by the Tech Crackdown
Alibaba group holdings suffered the most in prolonged China’s tech crackdown as it plummeted 3.49% to 159.47 today.
An anti-monopoly probe presented a $2.8 billion fine to the e-commerce giant, while regulators halted the user registrations of Didi Chuxing Technology.
The regulatory scrutiny started in November 2020, when the officials suspended the initial public offering of the Ant Group, a company owned by billionaire Jack Ma.
The regulators introduced a legislative onslaught as they prioritize a platform economy, which denotes the tech companies offering various services. The legislation adjustments also focus on strengthening data security and protection laws.
Consequently, huge tech companies experienced series of investigations and penalties.
Meanwhile, Alibaba has a current market capitalization of 432.31 billion and revenue of 118.87 billion.