7:39 p.m January 17, 2024
China’s Ministry of Industry has released draft guidelines to standardize the AI industry, as reported by Reuters. This move has impacted Chinese tech companies focused on AI, including Alibaba and Baidu.
The draft aims to establish over 50 national and industry-wide AI standards by 2026. This initiative is in line with Chinese President Xi Jinping’s statement in October 2023 on regulating AI from different perspectives, which is different from the US approach. The guidelines are part of China’s strategy to promote the development of the AI industry, with a focus on general key technologies and application projects. The plan also calls for over 1,000 companies to adopt these standards. This development comes as global companies, including Meta Platforms, Alibaba, Baidu, OpenAI, Google, Samsung and Getty Images, are actively working on developing their own large language models (LLMs).
Alibaba and Baidu stocks are posting significant losses today. The declines are due to the worsening economic situation in China and the Chinese government’s proposal to regulate and standardize the AI sector.
Baidu (BIDU.US) shares lose nearly 3.00%, approaching around $100 per share. If bulls fail to push the price above $104, the next support levels could be around $94 or even $77 per share. Source: xStation 5
Alibaba (BABA.US) shares are down over 1.50% today and are in a similar situation. The current share price is approaching the local 2022 low, around $60-63 per share.
source: xStation5 from XTB
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