According to a report from Hunterbrook Media, a Microsoft representative said that Richtech Robotics is just a customer.
- The representative told Hunterbrook Media that the AI lab engagement did not involve any commercial element.
- As per the report, the collaboration is Richtech’s participation in a Microsoft program that is available to all of its customers that seek to leverage its AI tools.
- On Tuesday, Richtech Robotics announced a partnership with Microsoft via the latter’s AI Co-Innovation Labs, sending stock prices soaring, shortly before announcing a private placement the next day.
Microsoft Corp. (MSFT) has reportedly denied a partnership with Richtech Robotics Inc. (RR), calling the engagement a standard customer engagement rather than a deal.
According to a report from Hunterbrook Media, a Microsoft representative said that the company is just a customer.
“Richtech participated in an AI Co-Innovation Lab engagement, which is a standard customer engagement focused on exploring and prototyping AI solutions using Microsoft technologies,” Hunterbrook reported, citing the representative. “There is no commercial element in this lab engagement.”
Shares of RR declined over 20% on Thursday at the time of writing.
What Is The Microsoft Partnership?
On Tuesday, Richtech Robotics announced a partnership with Microsoft via the latter’s AI Co-Innovation Labs. The company said that based on the deal, both parties would collaborate to upgrade Richtech Robotics’ ADAM robot by deploying Azure AI technologies.
Shares of RR rocketed more than 43% after the announcement.
As per the Hunterbrook report, the collaboration is Richtech’s participation in a Microsoft program that is available to all of its customers that seek to leverage its AI tools. The report alleged that the collaboration is a free prototyping program with no commercial partnership between the two companies.
Richtech reportedly linked Hunterbrook to a delayed 10-K in response to the allegations, which disclosed that the collaboration with Microsoft was “non-commercial,” which was not clarified in the press release.
The report highlighted Richtech’s private placement of $38.7 million the following day as well as the company’s missed 10-K filing deadline, which may have hampered its ability to raise capital through at-the-market offerings. The report alleged that the company may have announced its collaboration with Microsoft in a bid to boost its share price ahead of the fundraising.
Hunterbrook also disclosed its short position in RR stock.
How Did Stocktwits Users React?
On Stocktwits, retail sentiment around RR shares was in the ‘extremely bullish’ territory over the past 24 hours amid ‘extremely high’ message volumes.
One bullish user dismissed the report, saying Microsoft’s AI Co-Innovation Labs are not “charity,” and that the company does not waste time on irrelevant collaborations. The user said that calling the partnership a gimmick indicated not understanding “RaaS + AI + Fleet economics.”
Another user noted how there was no official denial from Microsoft yet.
A third user called the stock “a screaming buy” at current price levels.
Shares of RR gained more than 57% in the past year.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<
Also Read: GRRR Stock Captures Street And Retail Attention — Here’s Why