Alibaba, the Chinese e-commerce giant, has announced that it is developing its own version of the popular artificial intelligence (AI) chatbot, ChatGPT, CNBC reported.

The company revealed that it is currently testing its technology internally and did not give a specific timeline for when it would launch. The move comes amid the excitement generated by ChatGPT, which was created by OpenAI and has sparked an AI race among tech companies globally.

Microsoft invested in OpenAI and announced its AI-powered Bing search engine and Edge browser, which will be underpinned by ChatGPT technology. Google also announced its AI chatbot technology, Bard, as part of its plan to respond to the challenge posed by ChatGPT.

Chinese search giant Baidu is too testing its own chatbot, Ernie bot, which has sent shares skyrocketing, highlighting investor excitement over the technology. 

Alibaba, a major player in China's cloud computing industry and the country's largest e-commerce company, has hinted that its own chatbot could be integrated into its products. An Alibaba spokesperson stated that the company will continue to invest in innovative technology and turn it into valuable applications for its customers and end-users through cloud services.

Following the development, Alibaba shares reportedly jumped 3 per cent in pre-market trade in the US.

Another Chinese firm, NetEase, one of the country's largest gaming companies, announced that its education subsidiary, Youdao, has been working on generative AI and is looking at using large language models in some of its education productions. NetEase did not announce the development of a ChatGPT rival but stated that it would be announcing some new products soon, without providing a specific timeline.

The race for AI chatbots is heating up, with tech companies globally looking to get a piece of the action. ChatGPT remains to be seen how the technology will be developed and integrated into various products and services.