Alibaba's New Math AI Models Outshine US Counterparts: Report

Alibaba Group Holding Ltd BABA has taken a significant step forward in artificial intelligence by launching a series of large language models (LLMs) focused on mathematics, dubbed Qwen2-Math.

The e-commerce giant claims these new models outperform OpenAI’s GPT-4o in handling mathematical tasks, SCMP reports.

The development team, part of Alibaba’s cloud computing unit, announced on Thursday that they have concentrated on enhancing the reasoning capabilities of large language models over the past year, particularly in solving arithmetic and mathematical problems.

Also Read: Alibaba Leads Chinese Tech Giants in Boosting Shareholder Returns, But Economic Challenges Loom: Report

Qwen2-Math consists of three models, each varying in scale based on the number of parameters. The most advanced model, Qwen2-Math-72B-Instruct, has reportedly surpassed the performance of leading U.S.-developed models, including GPT-4o.

Recent reports indicated Alibaba’s cloud computing unit, which is handling the online broadcasting of the 2024 Summer Olympics, has announced a price increase on its domain name auction platform. Alongside the price adjustment, Alibaba Cloud is also revamping its operations.

In the fourth quarter, Alibaba’s Cloud Intelligence Group revenue rose by 3% year over year to $3.55 billion.

Is Alibaba A Good Stock To Buy?

An investor or trader's decision to buy or sell a stock is unique to their time horizon and risk tolerance. Many typical investors evaluate earnings growth and valuation on a particular stock before making a decision.

For example, for Alibaba, you'll notice that earnings in its last quarter contracted 0.71% source. As an investor, you'll want to decide whether that's better or worse than what you'd like to see among stocks in your portfolio.

On the valuation side, Alibaba’s price to earnings ratio – a measure of how much an investor pays for the company's earnings – is projected to compress 63.16% in the current quarter when compared with last year. That places it below similar businesses Amazon.com, PDD Holdings, MercadoLibre in its sector. You'll need to decide whether that makes it more or less attractive based on how you think the company will perform over time.

There are many different valuation metrics that may help you make a decision. Find more on Alibaba's quote page, or if you'd like a deeper dive in an advanced program, try Benzinga PRO for free.

Price Action: BABA shares traded higher by 0.85% at $80.66 premarket at the last check Monday.

Also Read: Alibaba And Tencent Lap Up Meta’s AI Large Language Model

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.