Just days after rejecting a $103 billion takeover bid from rivals Broadcom, chip maker Qualcomm is looking to expand its fray with their investment in Chinese artificial intelligence (AI) startup SenseTime Group. The news was released by SenseTime on Wednesday, with the company confirming that it had sealed an investment from Qualcomm, with some of the funding to be released later this year.
Last month, the two companies SenseTime and Qualcomm came to an agreement and announced a deal that would see them work together on AI, with SenseTime’s proprietary algorithms to be used in smart devices.
While commenting on the issue, Qualcomm confirmed the investment in startup SenseTime, though the magnitude of the investment was not disclosed by either of the firms. It was reported earlier this month that sensitive is planning to raise around $500 million in a new investment round, with the sum to become the biggest fundraising by a startup company in AI.
The fundraising when completed will see SenseTime valued at around $2 billion, with the potential drawing the attention of potential investors such as Singapore state investor Temasek.
SenseTime is one of the many AI facial recognition companies in Greater China that are raising capital rapidly, with their funds got from both local and foreign investors. Investors are flocking into this sector due to the billions of dollars that will be pumped into it in order to develop advanced facial recognition technology.
SenseTime was able to raise $410 million during its fundraising round back in July, with their biggest benefactors being Chinese buyout firm CDH Investments and China’s state-backed fund Sailing Capital. The technology that SenseTime is developing will use AI to rapidly identify and analyze the identities of individuals with the use of cameras. The technology has been tested by Chinese authorities as it is been used to track and capture the identities of suspects in public areas like airports or events like festivals.
SenseTime operates both in Beijing and Hong Kong, and they already have 40 Chinese authorities as part of their client list. The company is aiming to expand their base of operations overseas, with the firm planning to build an ASEAN headquarters in Singapore.