Chinese Media Joins Investment Hazards In Artificial Intelligence Seeing ChatGPT Cases

Artificial intelligence technology is mushrooming in China. (photo: Doc. Pixabay)

JAKARTA - Chinese state media on Thursday, February 9 warned against risks in pursuing shares in the local ChatGPT concept. Meanwhile domestic artificial intelligence (AI) companies have urged investors to be rational after their soaring share price caught regulators' attention.

ChatGPT, a chatbot developed by US company OpenAI and backed by Microsoft Corp, provides a very human-like response to user questions. The excitement surrounding the technology launched at the end of November has made Beijing's share of Haitian Ruisheng Science Technology Ltd soar 217% this year.

Hanwang Technology Co Ltd has also increased by 129% on Wednesday, February 8, CloudWalk Technology Co Ltd jumped 128% and TRS Information Technology Co Ltd rose 66%.

Shares withdrew last Thursday following state media warnings as well as a drop in Alphabet Inc's share which removed $100 billion after Google's parent ChatGPT rival shared inaccurate information.

In the front page editorial, the Securities Times highlighted several technological concepts that previously encouraged share purchases in China - such as the fifth generation telecommunications network (5G), augmented reality (AR), virtual reality (VR), and anti-virus garment whose excitement has eased.

Although some of the concepts being pursued were successful, "more new ideas have not been commercialized, or need more time to be proven," said the country-backed newspaper.

"However, some people are diligently speculating about fake concepts, luring others into pump and disposal schemes. Investors end up crying so they can't keep up."

Companies developing concepts like ChatGPT have also marked risks at regulatory request after their prices surged amid a strong interest in generative AI - technology that can generate new data and media such as text and images.

Beijing Haiti Ruisheng Science Technology says ChatGPT-style products and services have yet to generate revenue, and have nothing to do with OpenAI.

Although such technology "is in a long-term upward trend, we need to analyze its growth speed, and its effects, in a calm manner," he said in a filing in response to a question from the Shanghai Stock Exchange.

The company expects a drop of about 50% in net profit in 2022, and warns investors to be careful as its current valuation is much higher than the industry's average.

Co Inc's 360 Security Technology, in response to regulatory questions, said that self-developed ChatGPT-related technology is still in its early stages and is only used internally as a means of productivity.

It's not sure when to market ChatGPT-style products, and how effective the product is, so "we advise investors to pay attention to market trading risks, decide rationally, and invest carefully."

Among the thick-tongued Chinese companies joining the latest chatbot race, e-commerce leader Alibaba Group Holding Ltd, on Wednesday 8 February said it was developing ChatGPT-style tools, while rival JD.com Inc said it wanted to integrate technology like ChatGPT into several products.

NetEase Inc's game Department plans to implement a similar "big language model" technology in its education business, someone familiar with the matter told Reuters.