The first group of generative AI services has been given the green light for public use in China, allowing local technology leaders like Baidu Inc. and SenseTime Group Inc. to publicly compete with businesses like OpenAI Inc. and Microsoft Corp.

Both established players and major IT businesses have received approval from the Chinese Cyberspace Administration to move forward in the industry. One of the first to get approval from Beijing’s top internet controller was search powerhouse Baidu, along with SenseTime.

With billions of dollars poured in since the release of OpenAI’s ChatGPT to create services that can compete with the likes of Microsoft and Google’s Alphabet Inc., the move represents a significant turning point for China’s emerging AI industry and its future leaders.

Shares of Baidu increased 4.8% in Hong Kong. Baidu announced that the public will be able to use Ernie Bot, a ChatGPT rival, on August 31 in a post on its official WeChat account. The company will also roll out several new applications that will let people interact with generative AI.

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