AEye partners with Black Sesame to develop rail safety system in China

PLEASANTON, Calif. - AEye, Inc. (Nasdaq:LIDR), a technology company with a market capitalization of $103.45 million, announced Monday it has signed a strategic cooperation agreement with Black Sesame Technologies to develop an AI-based obstacle detection and early warning system for railway operations in China. According to InvestingPro data, AEye has demonstrated remarkable momentum with a 213.74% price return over the past six months.

The collaboration will integrate AEye’s Apollo long-range lidar sensor with Black Sesame Technologies’ chipset and perception software to create a detection system for trains. According to the press release statement, the system aims to provide ultra-long-range sensing capabilities for railway safety applications. While InvestingPro analysis indicates AEye maintains a strong balance sheet with more cash than debt, the company’s overall financial health score remains classified as ’Weak,’ suggesting careful monitoring of its execution capabilities.

"Pairing our industry-leading 1550 nm Apollo lidar with Black Sesame Technologies’ intelligent perception stack is anticipated to create a best-in-class solution for customers in China, currently the world’s largest lidar market," said Matt Fisch, Chief Executive Officer of AEye.

Wilson Liu, Co-founder & President at Black Sesame Technologies, noted that the system has been selected by "a top-tier Chinese OEM," though specific details about this customer were not disclosed.

The partnership represents AEye’s expansion into mainland China’s transportation safety market. The companies aim to deliver a full-stack solution tailored for high-speed transportation networks.

AEye’s Apollo sensor is designed to detect objects at distances of up to one kilometer, while Black Sesame Technologies specializes in automotive-grade computing platforms for smart vehicles. Black Sesame Technologies has been listed on the Hong Kong Stock Exchange since 2024 under stock code 2533.HK.

The announcement comes as China continues to expand its high-speed rail network, which is already the world’s largest. The companies did not provide specific timelines for product deployment or financial details of the agreement. Analysts tracked by InvestingPro project 26.23% revenue growth for AEye in the current fiscal year, potentially benefiting from this expansion into the Chinese market. For deeper insights into AEye’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

In other recent news, AEye Inc reported its financial results for the second quarter of 2025. The company announced a GAAP net loss of $9.3 million, equating to $0.48 per share, and a non-GAAP net loss of $6.7 million, or $0.35 per share. Despite these losses, the market responded positively to AEye’s strategic initiatives and the unveiling of its next-generation platform, Optus. Additionally, AEye filed a Form 8-K with the Securities and Exchange Commission, which included a shareholder letter from Chairman and CEO Matt Fisch. The letter was furnished as Exhibit 99.1 to the filing. The information in the filing is not deemed filed under the Securities Exchange Act of 1934, except where specifically referenced. These developments highlight AEye’s ongoing efforts to innovate and engage with its shareholders.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.