(Yicai Global) Jan. 31 -- Baidu’s shares dropped after rallying yesterday on reports that the Chinese search engine giant plans soon to launch a competitor to OpenAI’s ChatGPT, an artificial intelligence chatbot.

Baidu [HKG: 9888] slid 2.7 percent to finish at HKD132.40 (USD16.89) in Hong Kong today, after adding 5.4 percent yesterday in the wake of reports that said the company will introduce a ChatGPT-like AI bot in March. In New York, its stock [NASDAQ: BIDU] dipped 0.4 percent to USD138.48 yesterday.

Yicai Global has learned that Baidu founder Li Yanhong said at a company meeting late last year that it is unclear what kind of products can be developed using artificial intelligence in grid computing technology. Turning this tech into a product that everyone needs is hard, he said, adding that it is also most likely to make an impact.

Then on Jan. 10 Baidu said publicly that it will "create answers" for users' open search questions and customized information needs based on its self-developed generative modeling capabilities. 

AI startup OpenAI launched ChatGPT, or Chat Generative Pre-Trained Transformer, last November. It has more than 10 million daily active users, according to the latest figures. ChatGPT can mimic human-like responses, debug computer code, and be used to search for information.

ChatGPT has highly similar usability with search engines, which could undermine Google's position as a portal for online users, according to a report Morgan Stanley published last month.

Editor: Martin Kadiev