SenseTime CEO on IPO, Regulations
Chinese artificial intelligence giant SenseTime debuts today. Bloomberg spoke to CEO Xu Li in early December, prior to sanctions from the Biden administration, and discussed the company's business strategies.
Cofounder, Sensetime
Search every verified Li Xu interview, podcast appearance, and on-the-record quote โ each transcript cross-checked by AI and human review to confirm speaker identity. In a December 2021 interview, SenseTime cofounder and CEO Xu Li discussed the company's initial public offering and its business strategy. Xu stated that 60% of the IPO proceeds would be invested in research and development, specifically to build an artificial intelligence algorithm center for mass-producing AI models. He described the company's approach as "a more fundamental but more difficult path" of early investment in AI infrastructure, which he said accounted for a large portion of R&D expenses but was already showing a scaled effect. Xu said SenseTime saw "a very clear path to achieving profitability" in the next few years due to these investments. Regarding regulation, Xu said SenseTime attaches importance to data security and believes technology providers should work with other players to formulate industry standards. He argued that "timely interactive regulation" benefits emerging industries, and that regulators should adjust their approach with agility and immediacy, while companies should communicate with academics and regulators. On U.S. sanctions, Xu reiterated that the entity list "has no basis" but acknowledged it hurt SenseTime's international expansion plans, requiring more communication to explain export controls.
“We would like to invest the proceeds from this Hong Kong IPO in infrastructure and R&D in artificial intelligence; the production cost for technology is the key factor in commercializing it.”
“Sixty percent of the capital raised in this IPO will be spent in research and development to build up an infrastructure called an artificial intelligence algorithm center, which will be used for mass production of AI models that will enhance productivity and reduce cost.”
“We chose a more fundamental but more difficult path by investing in AI infrastructure at an early stage; this investment, including investing in R&D talent, accounted for a large portion of our R&D expense, but we are already seeing the scaled effect from our investments.”
“SenseTime always attaches great importance to data security; to some extent the owner of data is the data processor, but we believe that even technology providers should understand how to safely process data using the technology and work with other players to formulate industry standards.”
“We believe that investing heavily in technology R&D at the early stage is the only way to make an impact on the industry, and for us we are seeing a very clear path to achieving profitability for the next few years thanks to our early investment in AI infrastructure.”
“We believe timely interactive regulation will benefit emerging industries; some premature regulations can't appropriately reflect the boundary of an industry and technology if regulators haven't fully grasped the changes, and regulation can be a painful process if it comes too late after large investments have been mad...”
“Two parts of regulation are needed for emerging technologies: first, agility to adjust content and intensity with an evolving perspective; second, immediacy where companies engage in active communications with academics and regulators to embrace changes in a timely fashion.”
“First I need to reiterate that the U.S. entity list has no basis, but it indeed hurts our overall plan and development for international expansion; it requires us to do more communication to explain export controls, and we spend a lot of time and energy to make sure we abide by the export controls.”
Chinese artificial intelligence giant SenseTime debuts today. Bloomberg spoke to CEO Xu Li in early December, prior to sanctions from the Biden administration, and discussed the company's business strategies.
Sign in to search the full transcript archive, filter by topic, and access every quote from Li Xu.
The summary and quote tags on this profile are produced with AI assistance from verified, first-person interview transcripts, then checked by our team to confirm the speaker's identity and the accuracy of every quote. See how we verify →