Doing AI the Beijing way

Hey all, this is Sarah and Jane in Hong Kong. China’s ChatGPT games were just getting going in earnest and then the regulators called a time [View in browser]( [Bloomberg]( Hey all, this is Sarah and Jane in Hong Kong. China’s ChatGPT games were just getting going in earnest and then the regulators called a timeout. But first... Today’s must-reads: • Apple’s computer [shipments plunged 41%]( • Winklevoss twins [lent $100 million to their crypto platform]( • Ex-Twitter CEO [revealed a DOJ probe]( The AI internet won’t have it any easier Tuesday in China started off on a bullish note for fans of artificial intelligence services: SenseTime Group Inc. jumped as much as 11% after its Monday debut of new AI services, and then Alibaba Group Holding Ltd. said it’s building AI into smart speakers and its version of Slack. Along with first-mover Baidu Inc., the trio formed the most concrete riposte from China to OpenAI’s ChatGPT phenom. Then the Beijing government tamped down the enthusiasm, reminding everyone who runs the show. China’s top internet regulator issued a notice that it will require a security review of generative AI services before they can be put into action. So for all the fanfare we’ve seen, progress in Chinese AI will very much happen under the close supervision of the government. There are broad provisions for content to be accurate, to “uphold core socialist values,” and to not endanger national security — essentially spelling out the inevitable censorship obligations of service providers and reinforcing Beijing’s control over valuable data. Of course, the Cyberspace Administration of China is hardly first to call for a more considered pace of development. Elon Musk and more than 1,000 other prominent figures [called]( on AI developers to take a six-month break in training more advanced AI models — to better develop safety protocols and avert the “profound risks to society and humanity” that the technology could pose. Beijing’s intervention barely fazed investors. Share prices largely held steady, as many might have feared a more extreme reaction from the government. In many ways, the regulations published Tuesday — guidelines for now, seeking public feedback — simply reiterated norms on the Chinese internet. But there may be more to add, and when it comes to regulation, we've all seen how unpredictable Beijing can be. Of the three major AI demos so far, SenseTime — by far the smallest of the trio — may have generated the most excitement. Its bot composed children’s stories, wrote lines of code and interpreted Chinese patent laws. Baidu's show was largely a pre-recorded video, and Alibaba steered clear of onstage theatrics. Among the open questions right now, Chinese AI firms have some of the most vexing to tackle: how tied-down will their AI bots be at home? Will they fare any better outside of the domestic market? And how will they advance their AI model training without access to the best chips for the job, which are now off the table following US sanctions? China tech is still recovering from a bruising government crackdown that humbled its biggest stars. The frenzy over ChatGPT was just starting to give cause for investors to flock back in, but now no one can predict the road ahead in China, not even the most advanced of generative AI.—[Sarah Zheng](mailto:TK@bloomberg.net) and [Jane Zhang](mailto:TK@bloomberg.net) The big story The Super Mario Bros. Movie had the year’s biggest opening, [taking in $146 million in the US](. Movie theater stocks [got a bump](. “[My mind is a little bit blown](,” said Chris Meledandri, producer of the film. Get fully charged Revenue at the world’s biggest contract manufacturer of chips, TSMC, [disappointed for the second straight quarter](. And Samsung cut its chip production, which is [actually good news for the industry](. Hyundai is pouring $18 billion into [the chase]( to be an EV leader. Uber’s Middle East unit sold a $400 million [stake in a regional super app]( to the UAE’s largest telco. More from Bloomberg Live event: How are the world’s most creative minds across industries responding to a world in flux? Find out at Bloomberg Design + Make on April 25 in London and virtually. [Learn more here](. Get Bloomberg Tech weeklies in your inbox: - [Cyber Bulletin]( for coverage of the shadow world of hackers and cyber-espionage - [Game On]( for reporting on the video game business - [Power On]( for Apple scoops, consumer tech news and more - [Screentime]( for a front-row seat to the collision of Hollywood and Silicon Valley - [Soundbite]( for reporting on podcasting, the music industry and audio trends Follow Us You received this message because you are subscribed to Bloomberg's Bloomberg Tech Daily newsletter. If a friend forwarded you this message, [sign up here]( to get it in your inbox. [Unsubscribe]( [Bloomberg.com]( [Contact Us]( Bloomberg L.P. 731 Lexington Avenue, New York, NY 10022 [Ads Powered By Liveintent]( [Ad Choices](