By Li Panpan

(JW Insights) Apr 17 -- Chinese mobile gaming and social entertainment platform operator Kunlun Tech (昆仑万维) said its artificial intelligence products and AI-generated content models have not contributed to revenue as yet, said a Yicai Global report on April 14.

The Beijing-based company gave the information in reply to an inquiry from the Shenzhen Stock Exchange on April 13.

Its response differs from what Kunlun Tech told investors on the bourse’s interactive platform in February. At that time, the company said its AI-generated music model had launched in mid-2022, partnering with firms in the music, education, auto, and gaming sectors, and had generated some income, said the Yicai Global report. Kunlun Tech’s stock fell in wake of the newly revealed information and ended 2.7 percent down at CNY48.75 (USD7.12) a share today. It has surged 238 percent so far this year.

Kunlun Tech has contravened the exchange’s rules because it did not disclose its AI business' actual situation, its impact on the firm's performance, and related risks in an objective and complete manner when responding to investors’ inquiries, as ChatGPT and similar products have garnered much attention, the bourse said in a regulatory letter.

Kunlun Tech's dual 100 billion-parameter large language model, Tiangong 3.5, which is to compete with OpenAI's ChatGPT, may face risks, including slow research and development progress, less-than-expected application practice and commercialization, intensified industry rivalry, and policy changes, said the Yicai Global report.

Founded in 2008 and listed on the Shenzhen Stock Exchange in 2015, Kunlun Tech integrates the R&D of self-developed games, global distribution of premium games and platforms, and has an app store. Its net profit fell 25.5% to RMB1.2 billion ($175.3 million) in 2022 from the year before.