What's Going On With Alibaba Stock Wednesday

Alibaba Group Holding Limited BABA stock is trading lower as reports of the U.S. adopting a stricter stance over China's AI ambitions do the rounds.

The U.S. looks to revise export controls on AI chips to limit China's access to advanced technologies with military applications.

The strong demand in China for advanced chips used on AI projects has triggered a growing market for smuggled Nvidia GPUs, despite the pre-existing U.S. semiconductor ban.

On April 11, Alibaba revealed its large language model (LLM), dubbed Tongyi Qianwen, promising to add it across various businesses gradually.

It had incorporated its most advanced artificial intelligence system into its Slack-like DingTalk messaging app and a meeting assistant named Tingwu.

Alibaba's fintech affiliate Ant Group Co is developing large-language model technology to power ChatGPT-style services.

Nvidia Corp NVDA bagged significant orders from major Chinese internet companies with cloud computing businesses, including Alibaba, following the 2023 Spring Festival.

Price Action: BABA shares traded lower by 1.31% at $85.99 premarket on the last check Wednesday.