18/12/2023 (China) - Tang Xiao'ou, the billionaire founder of China's AI giant SenseTime, passed away on Friday due to undisclosed "health issues," as confirmed by a statement released by the partly state-owned company. The statement, issued early Sunday in China, expressed profound sadness at the loss of Professor Tang Xiao'ou, who was not only the beloved founder of SenseTime but also a renowned artificial intelligence (AI) scientist, director of Pujiang Lab, director of Shanghai AI Lab, and Professor at The Chinese University of Hong Kong. According to the statement, Professor Tang's health issues led to his passing on December 15, 2023, at 11:45 p.m.
The company's obituary did not provide specific details regarding the nature of Tang's health issues or whether his illness had been previously known.
SenseTime, a controversial Chinese AI company founded in 2014, was once the world's most valuable AI startup, partly owing to its direct ties and funding from the Chinese government. The company focused on developing AI technologies, including facial recognition, object detection, and AI-powered video and image analysis.
Representatives from SenseTime did not immediately respond to inquiries from Business Insider.
Tang's demise occurred shortly after US-based short-seller Grizzly Research accused the Chinese AI firm of artificially inflating its revenue. Grizzly Research suggested that SenseTime had engaged in questionable revenue practices, where the company provided funds, directly or indirectly, to customers for the purchase of goods, possibly goods that were never delivered.
In late November, Grizzly Research released a report stating, "We believe that SenseTime's core facial recognition business has become notoriously unprofitable due to intense competition, and the fact that the Chinese government simply does not make a practice of awarding highly profitable contracts to majority foreign-owned businesses." SenseTime countered these allegations with a filing to the Hong Kong Stock Exchange, describing the report as "without merit" and containing "unfounded allegations and misleading conclusions and interpretations." However, SenseTime's stock took a significant hit in response, plummeting nearly 10%, leading to total losses of over 40% for the year and more than 80% since its IPO, according to Forbes.
At the time of his passing, Tang's net worth stood at $1.1 billion, primarily attributed to the value of his shares in SenseTime, as reported by Forbes.