The allegations of revenue inflation led to a significant drop in SenseTime's stock, with total losses amounting to more than 40% this year and over 80% since its IPO. Despite the company's denial of the allegations, the impact on its stock value was significant. At the time of his death, Tang's net worth was $1.1 billion, entirely from his shares in SenseTime.
Key takeaways:
- Tang Xiao'ou, the billionaire founder of China's AI giant SenseTime, died due to undisclosed health issues.
- SenseTime, founded in 2014, was once the world's most valuable AI startup, developing technologies like facial recognition, object detection, and video and image analysis using AI.
- The company was recently accused by US-based short-seller, Grizzly Research, of artificially inflating its revenue through questionable schemes.
- Despite denying the allegations, SenseTime's stock fell nearly 10% following the accusations, contributing to total losses of more than 40% this year and over 80% since its IPO.