Singapore – SenseTime Group Inc., the prominent Chinese AI software firm, is reportedly scaling down its office space in Singapore as it navigates rising competition and cost pressures in the rapidly evolving AI landscape.
Bloomberg, citing unnamed sources familiar with the matter, reported that SenseTime is relocating from a prime downtown office to a smaller space in a more affordable neighborhood. The company is said to be vacating its roughly 11,000-square-foot (1,022-square-meter) office in Frasers Tower for a less central location.
The firm is downsizing as rivals like ByteDance expand overseas amid China’s economic slowdown. In stark contrast, one of its major competitors, OpenAI—the creator of ChatGPT—announced plans just a few months ago to establish an office in Singapore, with further expansion in the Asia-Pacific region on the horizon.
According to Bloomberg, the move highlights SenseTime’s struggle to remain competitive after losing Alibaba as a key backer in 2023. It also reflects a cooling trend in Singapore’s prime office market, which has relied on the expansion of Chinese tech firms in recent years.
As of now, the company’s representatives in Singapore have not issued any statements regarding the reports.
It is worth noting that SenseTime was among the first in China to win approval for generative AI services last year. However, in December 2024, Reuters reported that the company underwent a “major organisational restructuring” to accelerate its shift towards generative AI technologies. The report also highlighted that SenseTime has struggled to keep pace with competitors in the generative AI boom, with its shares plummeting 61% from their issue price three years ago.
