Why JD.Com Shares Are Nosediving

JD.Com Inc JD shares are trading lower by 5.95% to $37.63 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.

Amid the popularity of ChatGPT, JD.Com recently announced it will release an “industrial version” of ChatGPT called ChatJD, per CNBC.

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, JD.Com has a 52-week high of $68.29 and a 52-week low of $33.17.