SenseTime plunges after short seller alleges the Chinese AI firm inflated revenue
Summary
Shares of SenseTime fell as much as 9.7% on Tuesday after U.S. short seller Grizzly Research alleged the Chinese artificial intelligence firm inflated its revenue. The Chinese firm said it believes Grizzly Researchs report is "without merit and contains unfounded allegations and misleading conclusions and interpretations." SenseTime was once viewed as one of Chinas most exciting artificial intelligence companies and is best-known for computer vision technology that can power facial recognition software. Due to SenseTimes U.S. government blacklisting, the company "has a severely limited target market and therefore no outlook for any real improvement," Grizzly Research said in its report. "We believe SenseTime is operating a fundamentally dead-ended facial recognition software business, plus some additional AI R&D projects with almost no chance of scalable future profits," Grizzly Research said.