Daily Management Review

Warning About ChatGPT Stock Craze Risks Highlighted By Chinese State Media And AI Firms


Warning About ChatGPT Stock Craze Risks Highlighted By Chinese State Media And AI Firms
Chinese state media warned against the risks of chasing regional ChatGPT-concept stock prices on Thursday, while domestic artificial intelligence (AI) firms urged investors to exercise caution after their skyrocketing share prices attracted regulators' attention.
ChatGPT, a chatbot created by American company OpenAI with support from Microsoft Corp., responds to user questions in a startlingly human-like manner. Shares of Beijing Haitian Ruisheng Science Technology Ltd have increased 217% this year due to the frenzy surrounding the technology introduced at the end of November.
Wednesday saw gains of up to 129% for Hanwang Technology Co Ltd, 128% for CloudWalk Technology Co Ltd, and 66% for TRS Information Technology Co Ltd.
Following the state media alert and a decline in Alphabet Inc. shares that erased $100 billion in market value after the Google parent's ChatGPT rival shared false information, the stocks fell on Thursday. View More
The excitement for several technological concepts, including fifth-generation telecommunications networks (5G), augmented reality (AR), virtual reality (VR), and anti-virus clothing, has subsided, according to a front-page editorial in the Securities Times.
Despite the fact that some hotly contested ideas have been put into practice, the state-run newspaper noted that "many more new ideas haven't been commercialized, or require more time to prove."
"However, some people avidly speculate on fake concepts, luring others into schemes of pumps and dumps. Investors eventually end up in tears so they should not follow."
Companies creating ChatGPT-like ideas have also warned about risks at regulators' urging after their costs skyrocketed as a result of the intense interest in generative AI, which can produce new data and media like text and images.
Beijing Haitian Ruisheng Science Technology claimed that it has no affiliation with OpenAI and that its ChatGPT-inspired products and services do not yet generate any revenue.
Although such technology "is on a long-term uptrend," it stated in a filing in response to inquiries from the Shanghai Stock Exchange that "we need to analyse its speed of growth, and effect, in a cool-headed way."
The company warned investors to exercise caution because its valuation is currently much higher than the industry average and stated that it anticipates a roughly 50% decline in net profit in 2022.
In response to questions from regulators, 360 Security Technology Co. Inc. stated that its in-house developed ChatGPT-related technology is still in its infancy and is only used as a productivity tool internally.
Because it's unclear when it will be able to market products similar to ChatGPT and how effective they will be, "we advise investors to pay attention to market trading risks, make thoughtful decisions, and invest cautiously."
Among the wealthy Chinese companies that have recently entered the chatbot race, e-commerce leader Alibaba Group Holding Ltd. announced on Wednesday that it is creating a tool akin to ChatGPT, while rival JD.com Inc. stated that it intends to incorporate ChatGPT-like technology into some of its products.
According to reports, gaming giant NetEase Inc. plans to implement comparable "large language model" technology in its education business.