Tue, June 18, 2024

Markets obsess over all things AI, reaching China

Markets Obsess Over All Things AI, Reaching China

Investors in hot global artificial intelligence-related equity are getting a reality check as the rally cools. With accuracy issues, Google’s AI chatbot demonstration, which has resulted in the company’s largest loss in more than three months, has already underwhelmed investors. Investors should not rush into speculation on stocks that may gain from such AI innovations, according to a Chinese newspaper, since it will take time for likewise fresh ideas to establish their worth.

After reporting that its ChatGPT-styled service was on track for launch on Tuesday, Baidu Inc dropped as much as 8.5% in Hong Kong. Zhihu Inc, CloudWalk Technology Co Ltd, Hanwang Technology Co, and Beijing Deep Glint Technology Co are among the other companies that have declined.

Looks like the competition over AI dominance is getting fierce

With ChatGPT’s establishment in November, the arms race among global tech titans has climbed mountains. Microsoft Corp owns a stake in the OpenAI startup behind ChatGPT. It already demonstrated how the technology would enhance its Bing search engine. Google, the internet whale, responded by introducing a novel product named Bard that would include similar AI capabilities. This week, a slew of Chinese companies announced intentions to develop ChatGPT-styled services too. The companies include Alibaba Group Holdings Ltd and NetEase Inc.

An overwhelming initial euphoria has shifted attention to navigating the milestone progress of the above-mentioned firms. It turned into an underwhelming sadness for Alphabet as its shares crumbled down with the demonstration of its new chatbot.

According to regulators in China, investors should stay cautious about being carried away. Stock prices soared more than 30% in three consecutive sessions this week. Consequently, at least three businesses received inquiries from local stock exchanges. CloudWalk is a face recognition software creator. It has responded to the situation by saying that it hasn’t made any money from ChatGPT products. Moreover, it insisted it wasn’t cooperating with OpenAI at all.

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