What's Going On With Alibaba Stock Tuesday?

Alibaba Group Holding Limited BABA stock is trading lower Tuesday amid reports indicating its struggle to win the e-commerce war this holiday season and the updating of its artificial intelligence (AI) model Tongyi Qianwen. 

Meanwhile, Nvidia Corp NVDA is set to billions of dollars of revenue from China as the U.S. fresh AI technology sanctions on its Asian partner kicked in. China's most prominent AI and cloud-computing companies, including Alibaba and TikTok owner ByteDance, had placed orders to deliver AI chips worth over $5 billion in 2024. 

Alibaba's cloud computing arm at its annual conference in Hangzhou said Tongyi Qianwen 2.0 has "hundreds of billions of" parameters - a benchmark used to measure AI model power. 

The group has launched eight AI models for the entertainment, finance, healthcare, and legal industries, Reuters reports.

Alibaba's industry-specific models offered dedicated tools for creating images, writing computer code, analyzing financial data, and searching for legal documents. 

At the conference, Chairman Joe Tsai also said that about half of large-language AI models in China now run on Alibaba Cloud.

On a separate note, Alibaba is pressuring merchants to offer rock-bottom prices on its marketplaces in this year's Singles Day extravaganza to boost sales on Tmall or Taobao for the blockbuster shopping event. 

It looks to offer 80 million products at their lowest prices this year during Singles Day, which began in late October and stretches till November 11.

The move indicates the e-commerce powerhouse's intensifying rivalry with Douyin and PDD Holdings Inc PDD, Reuters reports.

China's state-backed chip investment fund has invested 14.56 billion yuan ($1.99 billion) in a memory chip company called Changxin Xinqiao.

China Integrated Circuit Industry Investment Fund, also known as the "Big Fund," contributed 33.15% of the total registered capital of Changxin Xinqiao, Reuters cites from filings.

Price Action: BABA shares traded lower by 1.26% at $82.09 premarket on the last check Tuesday.