DeepGlint, a Chinese artificial intelligence (AI) company that was added to the US government’s trade blacklist in July last year and once targeted a $300 billion valuation, had its initial public offering in Shanghai on Thursday, but soon saw its share price plummet amid the rout in tech stocks this week, reports the South China Morning Post. Shares of DeepGlint were down 12% over the past two days, heightening investor concerns about the potential of China’s AI industry. It recorded a market capitalization of $1 billion.
A specialist in facial recognition technology, the company is still operating at a net loss, according to Zhang Yi, chief executive at Shenzhen-based iiMedia Research. “Investors will keep a prudent attitude before the company achieves a breakthrough that can fix the “choke point” in the industry,” he said.
While China is expected to overtake the US in AI and other foundational technologies of the 21st century, being able to gain investor confidence by delivering handsome returns remains a challenge for companies like DeepGlint.