Chinese state media, AI companies warn of risks in ChatGPT stock frenzy - BusinessWorld Online

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Chinese state media cautioned against risks in chasing local ChatGPT-concept stocks, while domestic AI companies urged investors to be rational after their soaring share prices caught regulators' attention.

A VIEW of the city skyline in Shanghai, China, Feb. 24, 2022. — REUTERS

Frenzy around the technology launched at November-end has seen shares of Beijing Haitian Ruisheng Science Technology Ltd soar 217% this year. In a front-page editorial, the Securities Times highlighted several technological concepts that previously spurred stock buying in China – such as fifth-generation telecommunications networks , augmented reality , virtual reality and anti-virus garments – the excitement for which has died down.

Companies developing ChatGPT-like concepts have also flagged risks at the request of regulators after their prices shot up amid intense interest in generative AI – technology that can generate new data and media such as text and images. The company said it expects a roughly 50% slump in 2022 net profit, and admonished investors to be cautious as its valuation is currently much higher than the industry average.

 

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