AO 0235+164 is a very compact, flat spectrum radio source identified as a BL Lac object at a redshift of z=0.94. It is one of the most violently variable extragalactic objects at both optical and radio wavelengths. The radio structure of the source revealed by various ground-based VLBI observations is dominated by a nearly unresolved compact component at almost all available frequencies. Dual-frequency space VLBI observations of AO 0235+164 were made with the VSOP mission in January-February 1999. The array of the Japanese HALCA satellite and co-observing ground radio telescopes in Australia, Japan, China and South Africa allowed us to study AO 0235+164 with an unprecedented angular resolution at frequencies of 1.6 and 5 GHz. We report on the sub-milliarcsecond structural properties of the source. The 5-GHz observations led to an estimate of T_B > 5.8 x 10^{13} K for the rest-frame brightness temperature of the core, which is the highest value measured with VSOP to date.
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