The post Chinese AI Giant SenseTime Faces Accusations of Inflated Revenue appeared on BitcoinEthereumNews.com.

SenseTime, a prominent Chinese artificial intelligence (AI) company known for its facial recognition technology, finds itself entangled in controversy following accusations by research firm Grizzly Research LLC. Grizzly’s report alleges that SenseTime has falsely inflated its revenue and lacks transparency in its financial reporting. The accusations have shaken investor confidence, causing a significant drop in SenseTime’s stock value. Here is a closer look at the unfolding situation. Grizzly research’s claims Grizzly Research, a short-seller known for uncovering irregularities and fraud in the business world, released a report asserting that SenseTime engaged in revenue fabrication schemes to inflate its sales figures. The report also raised concerns about undisclosed entities controlled by SenseTime that are not reflected in its balance sheet, suggesting a lack of transparency in the company’s operations. The allegations by Grizzly Research had an immediate impact on SenseTime’s stock value, causing it to tumble more than 9% after the report’s release. Investors reacted to the uncertainty surrounding the company’s financial practices. SenseTime’s response In response to the allegations, SenseTime issued a statement denying the accusations and expressing its belief that the report lacks merit. The company asserted that the claims made by Grizzly Research are unfounded and include misleading conclusions and interpretations. SenseTime also criticized the research firm for its alleged lack of understanding of the company’s business model and financial reporting structure. SenseTime stated that it is carefully reviewing the allegations and considering the appropriate course of action to safeguard the interests of its shareholders. The company’s leadership is committed to addressing the situation and restoring confidence in its financial practices. Stock market impact SenseTime’s stock, which is traded in Hong Kong, experienced significant volatility in the wake of the allegations. Initially, the stock sank by as much as 9.7% early on the day following the report’s release.…

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Filed under: News - @ November 28, 2023 9:26 am