The AI arms race continues to heat up, and at this blistering pace, Chinese stock and e-commerce giant Alibaba (NYSE:BABA) is stepping up its own efforts. A new connection between AI and some of Alibaba’s staple systems will be coming up soon, and the word alone has sent Alibaba stock up nicely in Thursday afternoon trading.
Word from Bloomberg News reveals that Alibaba will incorporate Tongyi Qianwen, a large language model of artificial intelligence, into the DingTalk mobile messaging system and the Tingwu meeting assistant system. With Tongyi Qianwen in place, the platforms can now analyze both audio and video files and create summaries of them for users to consume later. It’s supposed to better help users deal with the rapidly-increasing quantities of video and audio that consumers need to deal with daily.
This isn’t the first time that Chinese stocks have been willing to bring AI into their operations. Baidu (NASDAQ:BIDU) brought out Ernie Bot, a ChatGPT competitor, to its lineup back in March. However, Baidu is also waiting for the Chinese government’s approval to release the product. Intense Chinese censorship and tight rein over the Internet as a whole in China have made the release of such products difficult.
Analysts, meanwhile, expect good things for Alibaba. With 15 Buy ratings, Alibaba stock is considered a Strong Buy. Further, with an average price target of $147.79, it offers its investors 76.78% upside potential.