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Title: Alibaba Group (BABA) Stock: $52.4 Billion Bet On AI Future
Alibaba Group Holding Limited has made a significant announcement regarding its artificial intelligence strategy, committing to invest at least 380 billion yuan ($52.4 billion) in cloud computing and AI over the next three years. This substantial bet on the future of AI reflects the company’s commitment to staying ahead of the curve in a rapidly evolving technological landscape.
As part of this effort, Alibaba has also announced an upgrade to its Quark AI assistant. The revamped assistant boasts enhanced reasoning capabilities, allowing users to ask more complex questions and engage in deeper conversations. This upgraded AI technology is designed to improve user experiences across various platforms, including customer service chatbots and other applications.
The market has responded positively to this announcement, with Alibaba’s American depositary receipts rising 62% this year through Wednesday’s close. Barron’s financial publication also named the company a stock pick for 2025, citing its relatively low valuation as an attractive entry point should sentiment toward the Chinese market improve.
It is worth noting that Alibaba has taken a unique approach to AI development by focusing on open-source models. This strategy stands in contrast to some competitors’ methods, such as OpenAI’s recently released GPT-4.5 model, which requires a $200 monthly subscription fee for access.
Alibaba’s commitment to this open-source approach aligns with its position in the competitive Chinese market, where the company is actively engaged in a price war for customers. By embracing an open-source strategy, Alibaba aims to promote innovation and collaboration within the AI community while maintaining its competitive edge.
As the company continues to invest heavily in AI development, it is clear that emotional intelligence technology will play a key role in Alibaba’s future growth strategy.
Source: https://coincentral.com/alibaba-group-baba-stock-52-4-billion-bet-on-ai-future/
