Chinese AI Firm SenseTime Cuts Back on Singapore Office Space

SenseTime (0020) is reducing its office footprint in Singapore, scaling back once-lofty ambitions at a time it’s struggling to compete in the post-ChatGPT era.

The Chinese AI pioneer is moving from a prime downtown location to a smaller office in a less expensive neighborhood, people familiar with the matter said. The company is giving up a roughly 11,000 square foot space in Frasers Tower for a less central building, the people said, asking to remain unidentified discussing private decisions.

SenseTime is downsizing at a time fellow tech firms including ByteDance are expanding abroad, seeking to escape an economic downturn back home. The retreat underscores how SenseTime, which in 2023 lost Alibaba (9988) as a financial backer, is grappling with new rivals in a crowded AI arena.

It also reflects the changing fortunes of Singapore’s prime office market, which has depended on expansions from deep-pocketed Chinese firms in recent years. That’s now softening as companies cut costs and real estate supply rises.

(Bloomberg)