SenseTime Shares' AI-Powered Rally Keeps Charging Ahead

Dow Jones04-29

By Sherry Qin

Shares of Chinese artificial-intelligence specialist SenseTime continued their bull run on Monday amid enduring enthusiasm over its new large-language model, which the company says can rival OpenAI's own model.

The rally ends a years-long selloff sparked by investor concern about the company being placed on a blacklist by the Biden administration, which sent the stock down more than 50% after a shares lockup expired following the initial public offering.

SenseTime surged as much as 11% in early Hong Kong trading before paring gains to 3.4%. Since the debut of its new large-language model last week, its shares have more than doubled.

SenseTime presented its generative AI model SenseNova 5.0 at an event on Tuesday last week, saying the product has "met or exceeded GPT-4 Turbo in mainstream objective evaluations." GPT-4 Turbo is a popular large-language model made by U.S. giant OpenAI.

SenseTime has been rolling out new language models much faster than expected, and with significant capability improvements, China Galaxy Securities analyst Yanjing Wu said in a research note.

"By merging edge and terminal models with cloud capabilities, SenseTime is lowering the entry barriers for AI applications across various industries and accelerating the deployment and commercializing of LLMs," said DBS analyst Ryan Wang.

The latest release offers some hope to investors who have witnessed one of China's AI software pioneers falter since its initial public offering in late 2021.

The U.S. added SenseTime to a blacklist that barred Americans from buying its shares in December 2021 due to its alleged links to the Chinese military. That same month, SenseTime went public in Hong Kong. Once the world's most valuable AI startup, SenseTime shares have been in almost constant decline since their debut. Despite the recent rally, SenseTime's shares are still 68% lower than its IPO price.

Write to Sherry Qin at sherry.qin@wsj.com

(END) Dow Jones Newswires

April 29, 2024 00:07 ET (04:07 GMT)

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SenseTime Shares' AI-Powered Rally Keeps Charging Ahead

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