China lets Baidu, others launch ChatGPT-like bots to public; tech shares jump

Baidu, China’s leading online search provider, said its ChatGPT-like AI chatbot Ernie Bot would be fully open to the public. PHOTO: EPA-EFE

BEIJING – Four Chinese tech firms, including Baidu and SenseTime, on Thursday launched their artificial intelligence (AI) chatbots to the public after receiving government approval, as China’s government pushes to widen the use of such products amid competition with the US.

Baidu, China’s leading online search provider, said in a statement that its ChatGPT-like AI chatbot Ernie Bot was now fully accessible to the public.

A SenseTime spokesman told Reuters via e-mail that its chatbot, SenseChat, was also now “fully available to serve all users”.

Two AI start-ups, Baichuan Intelligent Technology and Zhipu AI, also announced similar public launches on Thursday.

Shares in Baidu and SenseTime jumped in early Hong Kong trade, gaining 3.1 per cent and 2.7 per cent respectively in a broader market that was trading 0.4 per cent lower.

Unlike other countries, China requires companies to submit security assessments and receive clearance before releasing mass-market AI products.

The authorities have recently accelerated efforts to support companies in developing AI as the technology increasingly becomes a focus of competition with the United States.

Chinese media reported that a total of 11 firms had received approvals from the government, including TikTok parent ByteDance and Tencent. Neither company immediately responded to requests for comment.

It is unclear whether Alibaba has received approval as at this week. But an Alibaba Cloud spokesman told Reuters the company has completed filings for its AI model, Tongyi Qianwen, and that the model is awaiting its official launch.

The person also said the company expected the regulators to release a list of companies with approvals within the coming week.

Being the first to market in China is considered critical for the country’s cut-throat Internet industry. Baidu’s Ernie Bot topped the free app category on Apple’s App Store in China on Thursday after the announcement.

“I think the ones that got approved have an early-mover advantage to be able to fine-tune their product faster than competitors,” said Morningstar analyst Wang Kai.

ChatGPT-maker OpenAI, which is backed by Microsoft, is on track to generate more than US$1 billion (S$1.35 billion) in revenue over the next 12 months, tech-focused publication The Information reported on Tuesday.

The approvals were widely anticipated after China published a set of interim rules aimed at regulating generative AI products for the public that went into effect on Aug 15.

Previously, companies were only allowed to conduct small-scale public tests of AI products, but with the new rules, companies have widened their AI product tests by enabling more features and engaging in more marketing. Prior government approval is not needed for products targeting businesses.

Mr Shawn Yang, an analyst at Blue Lotus Capital Advisors, said the government’s move to green-light AI products could spark consolidation in the industry.

“Many people were rushing into the large language model business,” he said, “But the industry may soon consolidate. Only those with the data and tech capability will be able to push forward.” REUTERS

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