Chinese Government Approves Launch of AI Chatbots, Leads to Surge in Tech Stocks

Four Chinese technology firms, including Baidu Inc and SenseTime Group, released their artificial intelligence (AI) chatbots to the public on Aug 31 after receiving government approval, as China's government seeks to expand the use of such products in the face of competition from the United States.

Baidu, China's leading online search provider, announced in a statement that Ernie Bot, its ChatGPT-like chatbot, is now fully accessible to the public. According to an email from a SenseTime spokesperson, its chatbot, SenseChat, is now "fully available to serve all users."

On August 31, two other AI startups, Baichuan Intelligent Technology and Zhipu AI, announced similar public launches.

Baidu and SenseTime shares rose 3.1% and 2.7%, respectively, in early Hong Kong trade, outperforming the broader market, which was down 0.4%. China, unlike other countries, requires companies to submit security assessments and obtain clearance before releasing mass-market AI products.

Authorities have recently stepped up efforts to assist companies in developing AI, as the technology becomes a focal point of competition with the United States.

According to Chinese media, the government approved 11 companies, including TikTok owner ByteDance and Tencent Holdings. Neither company responded immediately to requests for comment on their AI plans.