China's SenseTime backs AI space computing project

SenseTime is moving into orbital infrastructure. The Chinese artificial intelligence company just confirmed its involvement in a large-scale project to deploy a constellation of 2,800 satellites designed for in-orbit computing. This initiative is a partnership with aerospace startup Adaspace and aims to create a hybrid network that merges space-based processing with terrestrial systems. The project seeks to provide high-speed computing power on a massive scale by the end of the decade.

Adaspace has been working on this technology since last year and already maintains a small fleet of satellites capable of performing AI tasks in orbit. By shifting processing away from the ground and directly into space, the companies intend to increase decision-making speed and data efficiency. They plan to launch four initial satellites for verification before the end of 2026, with a functional hybrid backbone expected by 2028.

The collaboration comes at a critical time for both firms. SenseTime, while a major player in the domestic AI sector, continues to navigate financial losses and trade restrictions. Adaspace has faced challenges in securing public market funding through multiple attempts at an initial public offering in Hong Kong over the past 18 months. By joining forces, they hope to stabilize the path forward for the so-called SenseTime Space Computing Constellation.

Beyond this space project, SenseTime is also expanding its domestic infrastructure. The company confirmed it is working with 15 local chip manufacturers, including Huawei Ascend and Cambricon, to construct new computing clusters. These clusters are intended to handle increased token operations as demand for AI hardware rises within China. The market reacted to the news with a 3.1 percent increase in SenseTime share prices on Monday.