China Warnes Against AI Frenzy As Alibaba, Baidu Chase Their ChatGPT Dreams

A Chinese state-owned publication warned against the hype around AI-linked stocks in a high-profile editorial.
The editorial cautioned that "some market capitals are keen on false concept speculation, luring investors to chase the market, and finally end up with losing. Investors must not follow the trend," Barron's reports.
Despite AI's attractive growth and genuine consumer-tech utility, a recent rally in stocks linked to the technology increasingly looks like it's overdone and could end badly.
A warning from Chinese state-owned media is equivalent to a ruling from a Beijing regulator.
China's sweeping regulatory crackdown since late 2020 on the country's tech sector proved costly for stocks like Alibaba Group Holding Limited BABA.
Alibaba and Baidu, Inc BIDU went aggressive on AI after the high-profile public launch of Microsoft Corp MSFT backed OpenAI's ChatGPT chatbot.
Microsoft leveraged the bot to beef up its Bing web search engine.
Google parent Alphabet Inc GOOG GOOGL prepared to launch a ChatGPT competitor.
Price Action: BABA shares are down by 2.42% at $105.84 premarket on the last check Friday.