Chinese AI Firm SenseTime Dives After Short-Seller Takes Aim
- Report is ‘without merit’, Shanghai-based AI developer says
- Company is building a ChatGPT-like conversation bot for China
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SenseTime Group Inc. shares plummeted their most since April after short-seller Grizzly Research released a report accusing the Chinese AI company of inflating its revenues.
Grizzly cited documents and insiders describing how SenseTime engaged in what it called round-tripping, where it allegedly financed companies that in turn fed business to SenseTime. Its stock tumbled as much as 9.7% before closing about 5% lower in Hong Kong. SenseTime said the report “is without merit and contains unfounded allegations” in a filing to the exchange.