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Investing.com -- Shares of Super X AI (NASDAQ:SUPX) are under pressure after short-seller J Capital released a scathing report calling the company a "design and fit-out company pretending it’s in AI."
The report alleges that SUPX, which has seen its stock rise 1,284% year-to-date, is actually backed by Chinese property developers, including Wang Zhenhua, who owns 10.2% of the company. J Capital notes that Wang is a convicted felon who served five years for child molestation and was a prominent Communist Party official until his sentencing in 2020.
J Capital claims SUPX began pretending to pivot to AI approximately a year ago without evidence of actually building AI infrastructure or possessing the expertise to do so. The report suggests that the company’s partnerships with PanaAI and acquisition of MindEnergy involve undisclosed related parties.
The short-seller’s research indicates that SUPX’s advertised AI products may feature digitally altered images with plagiarized specifications from other companies’ websites. Photo inspection tools suggest the SUPX logo may be photoshopped onto hardware images.
The report also highlights that SUPX has reported no progress on a $200 million "superfactory" announced in August 2024, and is merely renting a small portion of a warehouse for its "Japanese AI Supply Center."
Recent executive departures raise additional concerns. CEO Howard Tang was fired on July 31, 2025, and remains unreplaced. The CFO and chairman of the Audit Committee resigned on June 30, 2025, with another Audit Committee member resigning on July 31. The previous Audit Committee chair was terminated on March 31, 2025.
J Capital alleges that key managers and board members have connections to scams, frauds, and Chinese pump-and-dump schemes. The report states that Howard Tang had his license suspended by the Hong Kong Securities and Futures Commission for approximately 17 months.
SUPX has gone through three auditors in just one year and discloses a risk of delisting if the PCAOB determines it cannot fully investigate auditors for two consecutive years.
The report also criticizes SUPX’s IPO underwriter, Spartan Capital, citing alleged stock churning and compliance issues, and notes that the company’s previous attempted IPO underwriter in 2022, Univest Securities, has been associated with fraudulent companies.
J Capital claims SUPX typically raises money after making "exciting but empty announcements" that drive up the share price. In August, the company sold 3.1 million shares privately for $9.37 per share, while the current trading price exceeds $50.
SUPX is trading at 472 times its fiscal year 2024 annual revenue, according to the report.
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