Li Xu on IPO
From SenseTime CEO on IPO, Regulations · · BloombergTechnology
“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.”
On , Li Xu, Cofounder at SenseTime, spoke about IPO during SenseTime CEO on IPO, Regulations on BloombergTechnology.
About Li Xu
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.