How generative AI helps SenseTime turn a profit even as Chinese peers struggle

The AI firm has managed to become profitable by carving out a niche involving one-person firms and productivity tools, company executives say Chinese artificial intelligence pioneer SenseTime is carving a unique path to profitability by steering away from a blind chase for model size, focusing instead on helping clients complete enterprise tasks, executives from the firm told the South China Morning Post. Speaking after the firm reported a net profit of 617.3 million yuan (US$92.0 million) for the first half of 2026 last week, executives including CEO Xu Li and chief financial officer Wang Zheng outlined how a pivot towards AI productivity tools and solo entrepreneurs had helped SenseTime create a sustainable business model. The performance – SenseTime’s first-ever first-half profit under International Financial Reporting Standards since its 2021 Hong Kong listing – marks a stark turning point for the company. Revenue rose 23.4 per cent year on year to 2.91 billion yuan. It also stands in sharp contrast to high-flying domestic peers.

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