Alibaba Group BABA was up by 4.15% during Thursday’s premarket after announcing the launch of more than 100 new open-source AI models and introduced a text-to-video generation tool.
What Happened: The new models, named Qwen 2.5, are designed for various applications, including automotive, gaming, and scientific research. They feature enhanced capabilities in mathematics and coding, Alibaba stated, CNBC reported on Thursday.
At the time of writing, Alibaba was trading at $87.92 while it closed at $84.42 on Wednesday, according to Benzinga Pro.
These models are open-source, allowing global researchers, academics, and companies to utilize them without needing to train their own systems, saving time and costs. Alibaba aims to increase the adoption of its AI by making these models accessible.
The company also upgraded its proprietary flagship model, Qwen-Max, which is sold through its cloud computing services. Alibaba claims Qwen-Max 2.5-Max outperforms competitors like Meta Platforms Inc. META and OpenAI in reasoning and language comprehension.
Additionally, Alibaba introduced a text-to-video tool that generates videos from user prompts, similar to OpenAI’s Sora. CEO Eddie Wu emphasized the company’s strong investment in AI research and global infrastructure development.
Why It Matters: Alibaba has been aggressively expanding its AI capabilities to rival major players like Microsoft and Amazon.com. According to Derek Yan, Senior Investment Strategist at KraneShares, the company is leveraging generative AI to enhance customer service, sales, and marketing, potentially leading to significant operational savings.
Earlier this month, Alibaba launched a new AI-powered sourcing tool aimed at simplifying the sourcing process for American buyers, despite ongoing tensions between Beijing and Washington. This move is part of its broader strategy to expand its U.S. footprint.
Additionally, Alibaba recently introduced an AI-powered English version of its Taobao app in Singapore. This update has significantly boosted the app’s popularity, making it the top shopping app in the country.
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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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