Two Men Arrested for Using AI to Fabricate Rumors About Xiaomi, NIO and Other Automakers

Shanghai police recently cracked a case involving the mass generation and dissemination of false corporate-related information using AI technology, as part of a targeted crackdown on online rumors affecting businesses. Investigators found that suspects Liang and Guo operated over 4,000 self-media accounts using five computers and three virtual servers, repeatedly amplifying trending topics in sectors such as automotive and finance by publishing distorted, exaggerated, or insinuating false articles. Using AI-powered "content rewriting" tools, the pair could generate more than 100 articles within five minutes, ultimately publishing approximately 700,000 pieces that garnered 80 million views and yielded illicit profits of over RMB 80,000. In March this year, multiple automakers—including Xiaomi, NIO, and Volvo—filed reports with police, citing a surge of online rumors falsely claiming their sales figures were declining. The investigation revealed that all these accounts were actually run solely by Liang and Guo. The two admitted they deliberately collected controversial topics related to automakers and used AI tools to alter details and fabricate content for profit-driven traffic generation. Currently, the Jiading Branch of the Shanghai Municipal Public Security Bureau has placed both suspects under criminal compulsory measures on suspicion of illegal business operations and is conducting further investigations into potential upstream companies involved. The case remains under active investigation.