Alibaba says it's launching its own ChatGPT rival as the AI craze sends some stocks soaring

• Alibaba is testing a rival to ChatGPT, according to reports, as tech firms race to tap into the frenzy around the AI tool.
• Microsoft, Alphabet and Baidu are also looking into the technology.
• The Chinese e-commerce giant said its AI chatbot could be integrated into its products.

Chinese e-commerce giant Alibaba is testing its own rival to ChatGPT, joining the tech race to tap into investors' frenzy over artificial intelligence products.

The multinational tech company said Wednesday that it has been working on its own AI chatbot currently being tested at its firm, according to a CNBC report.

Generative intelligence and large language models have been the Chinese tech giant's focus since the founding of its AI research arm in 2017, the company said on Wednesday, though it didn't specify when exactly it plans to roll out the chatbot tool.

Alibaba is one of the latest tech companies to start working on a rival to ChatGPT, OpenAI's tool that can do anything from writing cover letters, come up with dating app messages, and give generic investing advice. Microsoft's stock soared after it said it would invest an additional $10 billion into OpenAI in January. Google parent Alphabet and Chinese search-engine giant Baidu are also taking part in this so-called AI arms race to the top.

Investors' excitement around the new tech advancement hasn't gone unnoticed. The latest AI stock boom has boosted the value of a string of companies, from AI provider C3.ai to Buzzfeed, who have jumped on the ChatGPT bandwagon in one way or another. They're either coming up with their own chatbot versions or incorporating the AI language tool into their products.

Alibaba's shares listed on the Hong Stock exchange rose nearly 4% on Thursday to 107.60 HKD.