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Sanctions-hit Chinese facial recognition firm DeepGlint in muted trading debut in Shanghai, with US$1 billion market cap
- DeepGlint, which was added to the US government’s trade blacklist in July last year, once targeted a US$300 billion valuation
- The company’s initial trading performance paled in comparison to that of AI giant SenseTime’s debut in Hong Kong last December
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Chinese artificial intelligence (AI) company DeepGlint, which once targeted a US$300 billion valuation, made its trading debut in Shanghai on Thursday, but quickly saw its share price decline amid the rout in tech stocks this week.
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Shares of DeepGlint, which was added to the US government’s trade blacklist in July last year, was down 12 per cent over the past two days, heightening investor concerns about the potential of China’s AI industry. It recorded a market capitalisation of US$1 billion.
A specialist in facial recognition technology, the company is still operating at a net loss, according to Zhang Yi, chief executive at Shenzhen-based iiMedia Research. “Investors will keep a prudent attitude before the company achieves a breakthrough that can fix the “choke point” in the industry,” he said.
While China is expected to overtake the US in AI and other foundational technologies of the 21st century, being able to gain investor confidence by delivering handsome returns remains a challenge for companies like DeepGlint.
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‘Flying Wolf’, China’s first AI-powered 3D automatic sorting system
‘Flying Wolf’, China’s first AI-powered 3D automatic sorting system
DeepGlint’s initial trading performance paled in comparison to that of SenseTime Group, China’s artificial intelligence champion, which saw its shares jump more than expected on its trading debut last December.
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Hong Kong-based SenseTime paid off for investors who shrugged off concerns about US sanctions in the run-up to its US$851 million stock offering.
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