Jack Ma Highlights AI's Future Impact Amid Biden Government's Sanction Speculations on China

Alibaba Group Holding BABA co-founder Jack Ma recently reiterated his belief in artificial intelligence during the tenth anniversary of a rural teachers program.

Ma continues to expect AI to reshape the world over the next decade, SCMP reported, citing the social-media account of his foundation.

Ma, a former teacher, expects AI and China’s demographic shifts to create new challenges for schools across the countryside.

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Last December, during the 20th anniversary of fintech giant Ant Group, Ma voiced AI’s transformational abilities in the next 20 years, the report added.

Ma has focused on the education and agriculture sectors after China abruptly scrapped Ant Group’s initial public offering in November 2020. China fined Alibaba with an antitrust penalty of $2.8 billion in 2021. All of which prompted the 60-year-old billionaire entrepreneur to maintain a low profile. Ma surrendered his corporate role in Alibaba despite maintaining his majority stake. Reportedly,  Ma makes occasional appearances at the company’s campus in Hangzhou.

Recently, the Alibaba Cloud unit collaborated with unicorn 01.AI, founded by former Google China head Lee Kai-fu, to develop AI models.

Alibaba’s cloud unit aims to set up a sizeable industrial model laboratory to serve its business clients.

Currently, Chinese companies focused on AI, including Alibaba, have waged price wars in the domestic market to gain market share. Recently, Alibaba Cloud agreed to offer up to 85% discounts for its AI models, marking its third discount for the year. Alibaba Cloud Intelligence Group’s second-quarter revenue grew 7% to $4.22 billion, backed by demand for its public cloud and AI products.

Additionally, Nvidia Corp and other chipmakers face potential US sanctions limiting AI chip exports to China. New curbs could prohibit Nvidia’s AI chip shipments to nations like China.

Alibaba stock gained over 13% in the last 12 months, as reports indicate possible stimulus measures from China to boost its economy and set a rally in the stock market. Alibaba is considered the tech barometer of China.

Investors can gain exposure to Alibaba through Invesco Golden Dragon China ETF PGJ and Avantis Emerging Markets Equity ETF AVEM.

Price Action: BABA stock is down 3.35% at $80.89 at the last check on Friday.

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