In the global AI race, a sanctioned Chinese firm says cheaper models can still win

China's artificial intelligence race has no finish line. DeepSeek , Moonshot AI, Alibaba and even consumer electronics firm Xiaomi have all dropped new models in recent weeks, jostling for position on leaderboards. From native AI startups to platform giants, companies across the sector face growing pressure to innovate, expand their user base and find paths to generate revenue. At the same time, they must manage steep research and development costs alongside rising expenses for computing power and hardware. SenseTime, one of China's early AI companies, has pivoted to stay relevant in the generative AI era. Long known for facial and image recognition, the company now develops multimodal systems that can combine text, audio and visual data. Founded in Hong Kong in 2014, SenseTime has faced U.S. sanctions over allegations related to surveillance of Muslim minorities in Xinjiang, which it has denied. Its latest model, SenseNova U1, integrates language and vision processing into a single system, improving speed and efficiency by removing the need to translate different modes. SenseTime is betting on cost efficiency as a competitive edge. The company has taken cues from DeepSeek's approach of delivering high-performing models under financial and technological constraints, according to cofounder and chief scientist Lin Dahua. Cofounder and chief scientist Lin Dahua in SenseTime’s offices in Science Park, Hong Kong. …