Core Viewpoint - SenseTime and Cambricon have signed a strategic cooperation agreement to enhance the optimization of software and hardware, aiming to build an open and win-win industrial ecosystem in the AI sector [1][3]. Group 1: Strategic Cooperation - The collaboration will leverage the technological and industrial resource advantages of both companies, focusing on the construction of domestic AI infrastructure, vertical business development, and technology export [3]. - The partnership aims to create a new paradigm for the domestic development of AI by combining SenseTime's capabilities in large model research and AI infrastructure with Cambricon's expertise in intelligent computing chips [4]. Group 2: Market Performance - Following the announcement, SenseTime's stock rose by 5.44% to HKD 2.52, with a market capitalization of approximately HKD 97.5 billion, while Cambricon's stock increased by 3.85% to CNY 1242 [1]. - Cambricon reported a revenue of CNY 2.881 billion in the first half of the year, a year-on-year increase of 4347.82%, and a net profit of CNY 1.038 billion, compared to a loss of over CNY 500 million in the same period last year [8]. Group 3: Business Focus - SenseTime is focusing on creating a more inclusive AI software platform, with its business covering generative AI, visual AI, and innovative sectors [5]. - The companies will explore a tiered product innovation system based on intelligent computing power and AI large model technology, aiming to drive industrial transformation and cultivate high-growth innovative enterprises [7]. Group 4: Future Outlook - Both companies will work on adapting the latest hardware and software products and developing integrated solutions for vertical industry scenarios [7]. - SenseTime aims to maintain its leadership in visual AI while seizing the historical opportunity presented by generative AI, which accounted for 77% of its revenue in the first half of the year, up from 60.4% in the same period last year [8].