--- title: "SenseTime Technology (0020) CEO Xu Li: Will actively promote the localization of computing power" type: "News" locale: "en" url: "https://longbridge.com/en/news/281110011.md" description: "SenseTime CEO Xu Li stated that the company will actively promote the localization of computing power, expecting annual capital expenditure and revenue to grow linearly, mainly investing in domestic chips. Currently, SenseTime's total computing power exceeds 40,000 PetaFLOPS, with computing power supported by domestic chips being less than 6,000 P. Xu Li emphasized that technological optimization is the core response to cost challenges, having achieved phased results last year and completed a placement fundraising of nearly HKD 3.15 billion to support the company's development needs" datetime: "2026-03-31T02:34:31.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/281110011.md) - [en](https://longbridge.com/en/news/281110011.md) - [zh-HK](https://longbridge.com/zh-HK/news/281110011.md) --- > Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/281110011.md) | [繁體中文](https://longbridge.com/zh-HK/news/281110011.md) # SenseTime Technology (0020) CEO Xu Li: Will actively promote the localization of computing power The artificial intelligence (AI) boom has driven technology companies to increase capital investment. Xu Li, Chairman and CEO of SenseTime (0020.HK), revealed that this year the group will actively promote the localization of computing power, expecting annual capital expenditure to grow linearly with revenue (corresponding growth rate), with most funds directed towards domestic chips. So far, SenseTime has a total computing power of over 40,000 PetaFLOPS (1P equals 1 quadrillion floating-point operations per second), of which the computing power supported by domestic chips is about less than 6,000P; considering that the current domestic chip computing power still lags behind Nvidia, SenseTime has reserved a considerable number of domestic chips to strengthen its localization layout. Regarding the cost challenges in the process of localization of computing power, Xu Li emphasized that the core lies in deep technology optimization, revealing that the group achieved phased results last year: "Including optimization through training, making the localization inference performance close to a one-to-one comparison with overseas chips; while achieving heterogeneous mixed training and inference at the level of over 10,000 cards." In terms of funding preparation, SenseTime completed a placement fundraising of nearly HKD 3.15 billion at the end of last year. Xu Li stated that the financing arrangement has always matched the company's development needs, and last year's financing was an "inevitable choice" under capital investment expansion. The group will ensure adequate capital reserves to keep the pace of scale expansion in line with industry demand growth. In terms of organizational structure optimization, SenseTime will complete its restructuring in 2024 and launch the "1+X" strategy, splitting off non-core "X" businesses. Xu Li pointed out that the new strategy makes the organizational structure more agile and begins to realize synergy benefits: it has currently obtained several external investments worth billions of RMB, and the spun-off businesses have generated positive synergy effects with the core generative AI business. In terms of business monetization model, the group adheres to the "trinity" strategy, packaging computing power, models, and applications into a comprehensive service for customer charging. Xu Li stated that the current AI infrastructure is still in a state of supply not meeting demand, and high costs hinder user experience improvement; through the integrated layout of the "trinity," cost reduction and efficiency enhancement can be achieved, optimizing large-scale task allocation. Thanks to the advantages of fully controllable processes, the inference efficiency of its open-source video generation model LightX2V has improved by more than 20 times, solely through innovations in the underlying framework and iterations of models and infrastructure. In terms of ESG effectiveness, the "Computing Power and Electricity Synergy Large Model" launched by SenseTime last year optimizes power scheduling by predicting computing power demand, saving an average of 7% in electricity costs annually since the system went online; the carbon emission reduction effect is significant, equivalent to reducing carbon emissions by 4,000 tons per year for every 10,000 P of computing power, which is equivalent to the annual carbon emissions of 2,800 Chinese households ### Related Stocks - [SENSETIME-W (00020.HK)](https://longbridge.com/en/quote/00020.HK.md) - [Guotai CSI Computer Theme ETF (512720.CN)](https://longbridge.com/en/quote/512720.CN.md) - [ChinaAMC Guozheng Semiconductor Chip ETF (159995.CN)](https://longbridge.com/en/quote/159995.CN.md) - [GTJA Allianz CSI All Share Semiconductors & Semiconductor Equipment ETF (512480.CN)](https://longbridge.com/en/quote/512480.CN.md) - [China Southern CSI Semiconductor Industry Custom ETF (159325.CN)](https://longbridge.com/en/quote/159325.CN.md) - [ChinaAMC SSE STAR Semiconductor Material & Equipment Thematic ETF (588170.CN)](https://longbridge.com/en/quote/588170.CN.md) ## Related News & Research - [Shares of China AI 'tiger' Zhipu surge 35% after revenue doubles in first earnings report](https://longbridge.com/en/news/281314542.md) - [Chinese Quantum Startup QBoson Bags USD145 Million to Expand Chip, Computer Production](https://longbridge.com/en/news/281166973.md) - [Chinasoft Chairman Boosts Stake in Vote of Confidence](https://longbridge.com/en/news/280924719.md) - [Huatai Securities Sticks to Its Buy Rating for SenseTime Group, Inc. 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