When SenseTime’s co-founder Yang Fan took the stage for a keynote titled ‘Intelligent Transformation and Symbiosis,’ he wasn’t just unveiling another corporate initiative. He was laying out a blueprint for how China’s AI sector might survive — and thrive — without relying on foreign chips.
The Galaxy Project, as SenseTime calls it, is a multi-partner push to scale domestic AI chip infrastructure. Nearly 20 partners have signed on, though the company has not disclosed all names. The goal: create a closed loop connecting chip-level technology, ecosystem partnerships, and commercial deployment for domestically-produced AI computing power.
What the Galaxy Project Actually Does
Yang Fan described the project as a response to three converging trends — though he didn’t specify them in detail. What is clear is that SenseTime is positioning itself as a bridge between chip design, software ecosystems, and real-world AI applications.
The closed-loop model means SenseTime isn’t just making chips. It’s building the infrastructure to test, deploy, and scale them commercially. This is a significant shift for a company better known for facial recognition and computer vision software.
Why This Matters for China’s AI Ambitions
For years, Chinese AI companies have relied on Nvidia’s GPUs for training and inference. But US export controls have made access to advanced chips increasingly difficult. The Galaxy Project is a direct response to that vulnerability.
If successful, it could reduce China’s dependence on foreign semiconductor technology. For businesses using AI in China, this means potentially lower costs, faster deployment, and fewer supply chain risks. For the broader tech ecosystem, it signals a strategic pivot toward self-reliance.
Beyond Chips: Space Computing and Scientific Research
SenseTime didn’t stop at the Galaxy Project. The company also signed a space computing agreement with Guoxing Aerospace, a satellite manufacturer. This suggests SenseTime is exploring AI applications in orbit — possibly for satellite data processing or autonomous operations.
Additionally, SenseTime struck a research partnership with five institutions, including the Shanghai Artificial Intelligence Laboratory. The focus is scientific computing applications — areas like climate modeling, drug discovery, and materials science where AI can accelerate breakthroughs.
Who Is Affected by This Move
For Chinese AI startups and enterprises, the Galaxy Project could mean access to domestic computing power that doesn’t rely on foreign supply chains. For researchers, the partnership with Shanghai AI Lab opens doors for large-scale scientific computing.
For global chipmakers like Nvidia and AMD, it represents a growing competitive threat in China’s domestic market. And for policymakers in Washington and Beijing, it’s another data point in the ongoing tech decoupling between the two superpowers.
Yang Fan’s Vision: Three Converging Trends
During his keynote, Yang Fan framed the Galaxy Project’s timing around three converging trends. While he didn’t elaborate publicly, analysts speculate these include: the tightening of US export controls, the maturation of domestic chip manufacturing, and the growing demand for AI computing power across industries.
“Intelligent Transformation and Symbiosis” — the keynote’s title — hints at a philosophy where AI hardware and software evolve together, rather than separately. This is a departure from the traditional model where chipmakers design hardware and software companies adapt later.
What This Means for Domestic AI Chip Scale-Up
The Galaxy Project is not a moonshot. It’s a pragmatic, multi-stakeholder effort to solve a specific problem: how to scale domestic AI chip production and deployment in a constrained environment.
By partnering with nearly 20 entities, SenseTime is spreading risk and pooling expertise. The closed-loop model ensures that chips aren’t just designed — they’re tested, deployed, and iterated in real-world commercial settings. This accelerates the learning curve and reduces time-to-market.
Confirmed Facts vs What Remains Unclear
Confirmed: SenseTime launched the Galaxy Project with nearly 20 partners. Yang Fan outlined a closed-loop strategy. The company signed a space computing agreement with Guoxing Aerospace and a research partnership with five institutions including Shanghai AI Lab.
Unclear: The specific names of all 20 partners. The exact timeline for deployment. The three converging trends Yang Fan referenced. The scale of investment involved. Whether the project will produce chips comparable to Nvidia’s latest offerings.
SenseTime’s Strategic Position
SenseTime has a unique advantage in this space. Unlike pure chip startups, it has deep experience in AI software and deployment. Its large device business group already works on edge computing and embedded AI systems.
The company also has government ties and institutional partnerships — including with the Shanghai AI Lab — that provide credibility and access to research talent. This ecosystem gives SenseTime a head start over competitors trying to enter the domestic chip space.
Risks and Balanced View
The Galaxy Project faces significant challenges. Domestic chip manufacturing in China still lags behind TSMC and Samsung in advanced nodes. Yield rates and performance may not match global leaders.
There’s also the question of software ecosystem compatibility. Developers are accustomed to Nvidia’s CUDA platform. Convincing them to switch to a domestic alternative will require significant investment in tools, libraries, and support.
Critics might argue that SenseTime is spreading itself too thin — juggling AI software, chip infrastructure, space computing, and scientific research simultaneously. Execution risk is real.
Wider Trend: China’s Push for AI Self-Reliance
The Galaxy Project is part of a broader pattern. Chinese tech giants like Huawei, Alibaba, and Baidu have all launched domestic chip initiatives. The government has poured billions into semiconductor self-sufficiency through initiatives like the National Integrated Circuit Industry Investment Fund.
What makes SenseTime’s approach different is its focus on creating a closed loop — not just making chips, but building the entire ecosystem around them. This mirrors the strategy that made Nvidia dominant: hardware + software + deployment working together.
Practical Guidance for Industry Watchers
For investors: Watch for announcements about specific partners and performance benchmarks. The project’s credibility depends on execution, not just ambition.
For AI startups in China: Consider how the Galaxy Project might provide alternative computing resources. Engage early to shape the ecosystem.
For researchers: The partnership with Shanghai AI Lab could open new opportunities for scientific computing. Monitor calls for collaboration.
Future Outlook
If the Galaxy Project succeeds, it could accelerate China’s AI capabilities significantly — reducing dependence on foreign chips and enabling new applications in space, science, and industry.
If it fails, it will be another reminder of how difficult it is to build a competitive semiconductor ecosystem from scratch. Either way, the project represents a strategic bet that will shape China’s AI trajectory for years to come.
Our Take
The Galaxy Project is more than a corporate initiative. It’s a signal that China’s AI industry is moving from adaptation to self-reliance. SenseTime is betting that by controlling the entire stack — from chip design to commercial deployment — it can overcome the constraints imposed by export controls.
The partnership with Guoxing Aerospace and Shanghai AI Lab suggests SenseTime is thinking beyond traditional AI applications. Space computing and scientific research are high-value, high-complexity domains where domestic chip infrastructure could provide a competitive edge.
But the real test will be execution. Building a closed-loop ecosystem requires coordination across dozens of partners, sustained investment, and a willingness to iterate through failures. SenseTime has the vision. Now it needs to deliver.
Frequently Asked Questions
What is SenseTime’s Galaxy Project?
The Galaxy Project is a multi-partner initiative by SenseTime to scale domestic AI chip infrastructure in China. It involves nearly 20 partners and aims to create a closed loop connecting chip technology, ecosystem partnerships, and commercial deployment.
Why is SenseTime launching the Galaxy Project now?
Co-founder Yang Fan cited three converging trends — likely including US export controls on advanced chips, maturation of domestic chip manufacturing, and growing demand for AI computing power. The project is a strategic response to supply chain vulnerabilities.
Who are SenseTime’s partners in the Galaxy Project?
SenseTime has not disclosed all partner names. However, the company signed a space computing agreement with Guoxing Aerospace and a research partnership with five institutions, including the Shanghai Artificial Intelligence Laboratory.
How does the Galaxy Project affect China’s AI industry?
If successful, the project could reduce China’s dependence on foreign chips like Nvidia’s GPUs. It could provide domestic AI companies with alternative computing infrastructure, potentially lowering costs and improving supply chain security.
