China's ChatGPT Stock Frenzy Cools Amid Reported Regulatory Ban
The rally in Chinese artificial intelligence stocks is showing further signs of cooling amid media reports of authorities banning access to OpenAI’s ChatGPT service.
Local apps and websites have been ordered to terminate services that allow use of ChatGPT, according to stories in various Chinese and foreign publications over the past couple of days, some of which have since been deleted. OpenAI’s chatbot isn’t officially available in China but has been accessible via virtual private networks.
Shares of Beijing Haitian Ruisheng Science Technology Ltd. dropped as much as 8.5% Thursday, paring its more than 200% gain on the year. Hanwang Technology Co. slid by as much as its 10% daily limit after more than doubling in the past month. Beijing Deep Glint Technology Co. continued to trim its big advance since saying earlier this month that it lacks the ability to offer ChatGPT-related services.
The reported ChatGPT ban tallies with Beijing’s longstanding mistrust of foreign technology, as evident in its prohibition of sites such as Twitter and Facebook. It’s also seen as offering a chance for local companies like Baidu Inc., which are now racing to introduce AI-related technology that could be approved by the government. Baidu’s shares rose as much as 1.6% in Hong Kong on Thursday.