China's Ban On OpenAI's ChatGPT Likely To Serve As Tailwinds For Baidu, Alibaba: Report - Alibaba Gr Holding (NYSE:BABA), Baidu (NASDAQ:BIDU)

China ordered local apps and websites to terminate services that allow OpenAI's ChatGPT service, cooling down the rally in Chinese artificial intelligence stocks.
Shares of Beijing Haitian Ruisheng Science Technology Ltd and Hanwang Technology Co pared their gains after the AI-driven rally, Bloomberg reports.
Some high-flying stocks have begun to wobble as Beijing makes the public aware of its displeasure with ChatGPT.
OpenAI's chatbot has been accessible in China via virtual private networks.
The reported ChatGPT ban tallied with Beijing's longstanding mistrust of foreign technology, just like its prohibition of sites like Twitter and Facebook.
The ban would also serve as a boon for local companies like Baidu Inc BIDU, which raced to launch AI-related technology that could bag government approval.
"This will be very positive for Baidu," said Steven Leung, executive director at UOB Kay Hian (Hong Kong) Ltd told Bloomberg.
Baidu prepared to integrate ChatGPT counterpart Ernie Bot into its search, cloud, and in-car entertainment.
Many other Chinese tech companies have said they are working on ChatGPT products, including Alibaba Group Holding Limited BABA.
Chinese organizations, from state media to Shaolin Temple, bagged deals with Baidu's Ernie Bot ahead of an expected launch.
"ChatGPT could provide a helping hand to the US government in its spread of disinformation and its manipulation of global narratives for its own geopolitical interests," state-owned media outlet China Daily wrote in a Weibo Corp WB post.
Price Action: BIDU shares closed lower by 2.63% at $137.12 on Wednesday.

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