What happened
Shares of the large Chinese tech conglomerate Alibaba Group (BABA 0.59%) traded roughly 4.3% higher in the final hour of trading today after reports came out that the company is preparing to launch a ChatGPT-inspired technology, which has recently taken the world by storm.
So what
ChatGPT is an artificial-intelligence language processing chatbot first created by the company OpenAI that can pull information, engage in very natural-like conversation, and complete other tasks in a capacity never before seen by technology. Many large tech conglomerates have attempted to release their own variations of the technology, so it should come as no surprise that Alibaba is planning to follow suit.
Recent reports suggest the company could unveil a broad ChatGPT model on April 11 during its Cloud Summit in Beijing. An industry application model could follow on April 18.
Reports have also suggested that the DAMO Academy, which is Alibaba's research institute, would like to integrate its ChatGPT product into one of its smart speakers and AI personal assistant. Another large Chinese company, Huawei, is also planning to release a ChatGPT product as soon as this week.
Now what
ChatGPT has definitely been a buzzword, and it's not uncommon to see stocks move higher when they announce they are planning to launch a ChatGPT product or planning to integrate it into part of their business.
That said, Alibaba does look like an intriguing stock these days after the company recently announced that it is planning to break the company into six different parts, with many of those new divisions planning to eventually conduct an initial public offering.
This could allow investors to value the company using a sum-of-the-parts methodology, which would likely unlock significant value. It may also reduce some of the regulatory risks of owning a large conglomerate that deals with intense regulatory scrutiny from the Chinese government.
