Chinese AI firm SenseTime denies research firm Grizzly’s claim it inflated its revenue

By ZEN SOO
Associated Press

HONG KONG (AP) — SenseTime, a major Chinese artificial intelligence company known for its facial recognition technology, has rejected claims by a research company that it has inflated its revenue. SenseTime said in a notice to Hong Kong’s stock exchange that the allegations made by short-seller Grizzly Research LLC were “without merit.” SenseTime’s stock plunged nearly 10% after Grizzly released the report. Its shares were down 6.3% by Tuesday afternoon. Grizzly’s report said SenseTime uses revenue fabrication schemes to inflate its sales, among other allegations. The U.S. government blacklisted SenseTime in 2019, saying Chinese authorities use its facial recognition technology against the Uyghur ethnic minority in the northwestern Xinjiang region.