What's Going On With Alibaba Shares

Alibaba Group Holding Ltd - ADR BABA shares are trading lower by 5.03% to $94.74 Wednesday afternoon after Chinese regulators proposed rules overseeing AI technology.

What Happened?

Per a WSJ report, China’s top internet regulator proposed rules on Tuesday to control artificial-intelligence tools. Putting it at the forefront of efforts by governments worldwide to tame the new technology amid concerns over the challenges it poses.

In an effort to compete with the likes of ChatGPT, Alibaba's cloud computing unit recently offered invitation codes to some corporate customers to try out the large language model called "Tongyi Qianwen." 

Alibaba's research institute, DAMO Academy, is reportedly working to incorporate the large-scale model into its Tmall Genie, a smart speaker home to intelligent personal assistant AliGenie.

WSJ also says the Cyberspace Administration of China will "require companies to go through a government security review before providing such services and make companies responsible for the content their AI services generate, according to a draft of the rules."

According to data from Benzinga Pro, BABA has a 52-week high of $125.84 and a 52-week low of $58.01.