Alibaba Invests in New AI Technology
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy BABA?
Source: CNBC
- Significant Investment: Alibaba has led a 2 billion yuan ($290 million) investment in the startup ShengShu, aimed at advancing its AI video generation tool Vidu, thereby enhancing the company's competitive edge in the AI sector.
- Innovative Technology Direction: ShengShu's new 'world model' aims to simulate the physical world more naturally using multimodal data (vision, audio, and touch), marking a shift from traditional large language models to more complex AI systems, which could redefine industry standards.
- Intensifying Market Competition: With Alibaba and Baidu Ventures jointly investing $50 million in Tripo AI, this indicates a strategic positioning in the AI video generation and digital modeling space, further intensifying competition with rivals like Kuaishou and ByteDance.
- Future Development Potential: ShengShu aims to connect perception and action, promoting the application of AI systems across industrial, commercial, and home settings, suggesting a broad future application in robotics and autonomous driving fields.
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Analyst Views on BABA
Wall Street analysts forecast BABA stock price to rise
15 Analyst Rating
15 Buy
0 Hold
0 Sell
Strong Buy
Current: 127.680
Low
180.00
Averages
203.09
High
230.00
Current: 127.680
Low
180.00
Averages
203.09
High
230.00
About BABA
Alibaba Group Holding Ltd is an investment holding company mainly engaged in the provision of technology infrastructure and marketing platforms. The Company operates its business through four segments. The Alibaba China E-commerce Group segment is mainly engaged in E-commerce business, including operating Tmall Supermarket and Tmall Global, providing customer management services, product sales, as well as logistics services. It also operates quick commerce business such as Taobao Instant Commerce and Ele.me, as well as the China commerce wholesale business through 1688.com. The Alibaba International Digital Commerce Group segment is mainly engaged in international commerce retail and wholesale business, operating platforms such as AliExpress, Trendyol, Lazada and Alibaba.com. The Cloud Intelligence Group segment mainly provides public and non-public cloud services. The Other segments primarily include the operations of Freshippo, Cainiao, Alibaba Health and other business.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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