SenseTime Group Inc. experienced a substantial decline in its shares, marking its largest drop since April, following the publication of a critical report by short-seller Grizzly Research. The report accused the Chinese AI company of exaggerating its revenues and highlighted alleged irregularities in its business practices.
According to Grizzly Research, SenseTime has been engaged in what they describe as ’round-tripping’, a practice in which it purportedly provided funding to certain companies that then directed business back to SenseTime. This revelation resulted in a significant decrease in SenseTime’s shares, with the stock plummeting by as much as 9.7% in Hong Kong.
In response to the report, SenseTime issued a statement dismissing the allegations, describing the report as ‘without merit’ and containing unfounded claims. The Shanghai-based AI developer emphasized that the accusations made in the report are baseless.
Despite the allegations and the subsequent decline in its shares, SenseTime remains focused on its projects. Notably, the company is currently working on the development of a chatbot similar to ChatGPT, tailored for the Chinese market. This initiative reflects SenseTime’s commitment to advancing AI technology and enhancing conversational experiences in China.
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