China's Ban On OpenAI's ChatGPT Likely To Serve As Tailwinds For Baidu, Alibaba: Report

Anusuya Lahiri
·2 min read
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  • China ordered local apps and websites to terminate services that allow OpenAI's ChatGPT service, cooling down the rally in Chinese artificial intelligence stocks.

  • Shares of Beijing Haitian Ruisheng Science Technology Ltd and Hanwang Technology Co pared their gains after the AI-driven rally, Bloomberg reports.

  • Some high-flying stocks have begun to wobble as Beijing makes the public aware of its displeasure with ChatGPT.

  • OpenAI's chatbot has been accessible in China via virtual private networks.

  • The reported ChatGPT ban tallied with Beijing's longstanding mistrust of foreign technology, just like its prohibition of sites like Twitter and Facebook.

  • The ban would also serve as a boon for local companies like Baidu Inc (NASDAQ: BIDU), which raced to launch AI-related technology that could bag government approval.

  • "This will be very positive for Baidu," said Steven Leung, executive director at UOB Kay Hian (Hong Kong) Ltd told Bloomberg.

  • Baidu prepared to integrate ChatGPT counterpart Ernie Bot into its search, cloud, and in-car entertainment.

  • Many other Chinese tech companies have said they are working on ChatGPT products, including Alibaba Group Holding Limited (NYSE: BABA).

  • Chinese organizations, from state media to Shaolin Temple, bagged deals with Baidu's Ernie Bot ahead of an expected launch.

  • "ChatGPT could provide a helping hand to the US government in its spread of disinformation and its manipulation of global narratives for its own geopolitical interests," state-owned media outlet China Daily wrote in a Weibo Corp (NASDAQ: WB) post.

  • Price Action: BIDU shares closed lower by 2.63% at $137.12 on Wednesday.

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This article China's Ban On OpenAI's ChatGPT Likely To Serve As Tailwinds For Baidu, Alibaba: Report originally appeared on Benzinga.com

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