ChatGPT Stock Frenzy Risks: A Joint Warning from Chinese State Media and AI Companies
On Thursday, the Chinese state media issued a warning about the potential risks associated with investing in ChatGPT stock. Meanwhile, AI companies are encouraging investors to exercise caution, as their shares have skyrocketed and attracted regulatory scrutiny.
The excitement surrounding the ChatGPT chatbot has led to speculative investing in China’s stock market, causing a surge in the value of AI companies such as TRS Information Technology, Hanwang Technology, and CloudWalk Technology.
OpenAI’s ChatGPT, which is supported by Microsoft, provides answers to user questions with remarkable human-like accuracy.
What Chinese State Media said about ChatGPT stock?
The Securities Times published an editorial on its front page that discussed various technological trends that once sparked investment in China’s stock market, including 5G, AR, VR, and anti-virus clothing. However, the excitement surrounding these concepts has since subsided.
According to the state-backed newspaper, while some popular concepts have been successful, many new ideas are yet to be commercialized or need more time to be proven effective.
The newspaper warned that some people speculate on false concepts, enticing others into schemes that ultimately result in disappointment. It advised investors to not fall for such schemes.
Due to the intense interest in generative AI technology, which has the ability to produce new data and media such as text and images, the companies developing ChatGPT-related concepts have drawn attention to potential risks at the request of regulators, after their prices skyrocketed.
What Chinese companies said about ChatGPT stock?
Beijing Haitian Ruisheng Science Technology Ltd has stated in a filing to the Shanghai Stock Exchange that their ChatGPT-style products and services are not yet generating revenue and that they have no association with OpenAI.
The company advised caution in regard to ChatGPT stock valuation, which is significantly higher than the industry average, and stated that they expect a decrease of approximately 50% in its net profit for 2022.
They emphasized the need for a sober and analytical approach when considering the growth and impact of such technology, which they acknowledge as being on a long-term upward trend.
360 Security Technology Co Inc also responded to regulators’ inquiries, stating that their self-developed ChatGPT-related technology is still in its early stages and is only being used internally as a means to improve productivity.
The timing and efficacy of marketing ChatGPT-style products are uncertain, making it important for investors to be aware of the market trading risks involved. It is advised to make investment decisions based on rational thinking and to exercise caution.
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