(Yicai Global) Sept. 14 -- SenseTime Group, a leading Chinese developer of artificial intelligence software, said it has agreed to tie up with Saudi Company for Artificial Intelligence to provide AI solutions in the Middle East.

SCAI will invest SAR776 million (USD207 million) in SenseTime MEA, a joint venture formed at the end of last year by SenseTime and Public Investment Fund, the kingdom’s sovereign wealth fund, and build a high-end local AI lab.

SenseTime MEA will play an important role in Saudi Arabia’s strategy to drive innovation in the field of AI and emerging technologies. It will also help in the construction of the local AI ecological system with its own leading computer vision capabilities.

“We look forward to working closely to provide world-class AI solutions that will contribute to the success of diverse smart city, business intelligence, healthcare and education initiatives in the kingdom and beyond,” said Ayman AlRashed, chief executive of SCAI, which has long been developing and building an AI ecosystem in the country.

Founded in Beijing in 2014, SenseTime went public last December and operates in 15 countries and regions worldwide. The company has enjoyed continuous business growth in the Middle East.

SenseTime’s shares [HKG: 0020] closed down 1.8 percent today at HKD2.13 (27 US cents) each. Nearly 10 months after listing, the company’s stock is down 45 percent from an initial price of HKD3.85 because of big ongoing losses.

SenseTime’s first-half loss was CNY3.2 billion (USD460 million), narrowing from CNY3.7 billion a year earlier, after revenue dropped 14 percent to CNY1.42 billion.

The AI giant noted that the revenue decline was mainly due to projects in the smart business and smart city sectors failing to deliver on time because of Covid-19 lockdowns in Chinese cities.

Editor: Peter Thomas