0020.HK
Baidu does infrastructure

Artificial intelligence company SenseTime Group Inc. (0020.HK) announced on Thursday that it will raise HK$2.5 billion ($318 million) by placing around 1.67 billion new Class B shares at HK$1.50 per share, representing a 6.25% discount to the previous day’s closing price of HK$1.60. The new shares will account for 4.38% of the enlarged Class B share capital.

SenseTime said 30% of net proceeds from the sale will be usedto develop its AI cloud and expand its AI infrastructure, known as “SenseCore.” Another 30% will go to generative AI research and development. A further 20% will go toward exploring AI applications in emerging verticals, including embodied AI robotics, blockchain, real-world assets (RWA), digital assets and stablecoins. The remaining 20% will be allocated for general working capital.

The subscriber to the placement is Infinity Capital, which also invested HK$1.3 billion last week to acquire 5% of another AI firm, Fourth Paradigm (6682.HK).

SenseTime shares opened 1.25% lower on Thursday and closed flat at HK$1.6 by the midday break.

By Lee Shih Ta

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