SenseTime's performance report for the first half of 2024 shows that its total revenue reached 1.74 billion yuan, a year-on-year increase of 21%, of which generative AI business revenue surged 256% year-on-year to nearly 1.1 billion yuan, surpassing the traditional AI business for the first time, accounting for the total 60% of income. This marks SenseTime’s strong strength and market potential in the field of generative AI, and also reflects the booming development of China’s AI industry. This outstanding report card not only exceeded market expectations, but also injected new vitality into the entire AI industry.
As the artificial intelligence industry is surging, SenseTime has set off a new storm in the AI field with its eye-catching performance report for the first half of 2024. This Chinese AI giant not only delivered an impressive report card, but also demonstrated its strong strength and market potential in the field of generative AI.
According to the latest financial report, SenseTime’s total revenue in the first half of 2024 reached 1.74 billion yuan, a year-on-year increase of 21%. However, what's really striking is the explosive growth of its generative AI business. Revenue from this emerging business segment surged 256% year-on-year to nearly 1.1 billion yuan, surpassing the traditional AI business for the first time and accounting for 60% of total revenue. This amazing growth not only exceeded the company's own expectations, but also triggered a strong response in the entire AI market.
Faced with such outstanding performance, Xu Li, CEO of SenseTime, said that generative AI is in its golden development period and the company is ready to seize this historical opportunity to welcome the next wave of growth. This statement fully reflects the company's confidence in future development and forward-looking strategic layout.
Although the company still recorded a net loss of 2.47 billion yuan in the first half of the year, the loss narrowed 21% year-on-year, showing that the company is steadily moving towards its profit target. This improvement is due to the company's effective optimization of operating expenses while increasing investment in research and development. Data show that R&D expenses in the first half of the year were 1.892 billion yuan, a year-on-year increase of 6.1%, while sales and administrative expenses decreased by 21.2% and 7.7% year-on-year respectively. This strategy of increasing R&D and reducing costs reflects the company's pursuit of a balance between technological innovation and financial health.
In terms of business structure, generative AI business has become the company’s new engine. The financial report shows that this business achieved revenue of 1.05 billion yuan in the first half of the year, accounting for 60.4% of total revenue, far exceeding the traditional AI business (29.9%) and smart car business (9.7%). This change marks that SenseTime has successfully completed the strategic shift of its business focus.
In terms of technical strength, SenseTime's large model RiRiXin has outperformed GPT-4Turbo in multiple evaluations, demonstrating its leading technical level. The company has further consolidated its technical advantages in the AI field by building large-scale device AIDC to provide support for large-scale model training. It is worth mentioning that SenseTime's large models and intelligent computing services have been adopted by more than 3,000 industry leading companies, and the number of calls has achieved an astonishing 400% growth, which fully proves the market's recognition of its technology.
Looking forward to the future, SenseTime is actively applying generative AI technology to many industries such as finance and medical care, and promoting the application of large model technology in multiple business fields such as intelligent question answering, compliance risk control, and drug research and development. With the continuous penetration of generative AI technology and the expansion of its application scope, SenseTime is expected to maintain rapid growth in the future.
This eye-catching financial report of SenseTime not only demonstrates the company’s leading position in the field of AI, but also reflects the huge potential of the entire generative AI market. As a representative enterprise in China's AI industry, the success of SenseTime will undoubtedly inject new vitality into the entire industry and promote the application of AI technology in a wider range of fields. In the era of digital economy, the development trajectory of SenseTime deserves our continued attention.
The success of SenseTime has provided a new benchmark for the development of China's AI industry, and also indicates that generative AI will usher in broader application prospects. In the future, we will continue to pay attention to SenseTime's innovations and breakthroughs in the field of AI, and look forward to its greater contribution to promoting technological progress and social development.