Alibaba BABA is on a relentless mission to propel technological advancement through generative AI.
Emphasizing this commitment, Alibaba has recently introduced Qwen2-Math, a collection of mathematics-specific large language models (LLMs) that is capturing attention.
The latest models, an extension of the Qwen2 LLM, are engineered to enhance reasoning capabilities for tackling intricate mathematical dilemmas.
Alibaba’s ambition is to establish a strong foothold among students and mathematicians with the unveiling of Qwen2-Math.
This strategic move will also fortify Alibaba’s presence in the realm of cloud computing.
Alibaba Group Holding Limited Price and Consensus
Alibaba Group Holding Limited price-consensus-chart | Alibaba Group Holding Limited Quote
Expanding Generative AI Efforts Spur Growth
According to a Statista report, the generative AI market is projected to surge to $36.06 billion by 2024 and a staggering $356.10 billion by 2030, indicating a formidable CAGR of 46.5% between 2024 and 2030. Alibaba is strategically positioned to leverage this robust growth trajectory through its burgeoning generative AI-driven portfolio.
Alibaba introduced the “AI programmer,” underpinned by the company’s proprietary LLM. This innovative tool amalgamates roles such as software architect, development engineer, and test engineer to aid developers in drastically reducing application development timelines, sometimes down to mere minutes.
Furthermore, the company enhanced Model Studio, its AI model and application development platform, to provide a broader array of models and sophisticated AI resources. Developers now have access to over 100 models from AI firms like Baichuan AI, alongside an open-source framework for application development.
Alibaba is actively harnessing generative AI technology to fortify its global marketplaces, including AliExpress and Lazada. Through AI-powered tools, the company is facilitating cross-border merchants with translation services, content generation, and product return logistics.
Noteworthy is Alibaba’s introduction of its AI programming aide, Tongyi Lingma, which enhances software development efficiency by slashing test code implementation time by over 70%, sparing developers hours of manual labor.
Alibaba’s growing generative AI endeavors are primed to bolster its long-term outlook.
The Zacks Consensus Estimate for total revenues in fiscal 2025 is positioned at $141.05 billion, portraying an 8.1% year-over-year upsurge.
On the other hand, the Zacks Consensus Estimate for BABA’s fiscal 2025 earnings stands at $8.20 per share, indicating a 4.9% drop from the previous year’s reported figure. This estimate has remained unaltered over the past 30 days.
Intense Competition Poses Challenges for Alibaba
Nevertheless, this Zacks Rank #4 (Sell) entity is grappling with fierce competition in the generative AI sector from key players such as Microsoft, Amazon, and Alphabet, all of whom are intensifying efforts to fortify their supremacy.
Alibaba’s shares have ascended by 5.4% in the year-to-date period, trailing behind the industry’s growth of 6.8%. BABA’s performance falls short of Microsoft, Amazon, and Alphabet, which have witnessed gains of 8.4%, 9.9%, and 17.3%, respectively, in the year-to-date timeframe.
Microsoft rolled out fresh generative AI and data solutions tailored for retailers to enhance personalized shopping experiences, empower store associates, and centralize retail data. These solutions encompass Azure OpenAI Service copilot templates, retail data solutions in Microsoft Fabric, Dynamics 365 Customer Insights copilot features, and Retail Media Creative Studio.
Meanwhile, Amazon is leveraging its AI-powered assistant, Amazon Q, which fosters conversations, problem-solving, content generation, and insights. Interfacing with company information repositories, code, data, and enterprise systems, Amazon Q promotes operational efficiency, decision-making, and innovation.
Alphabet’s Google recently unveiled three novel open generative AI models—Gemma 2 2B, ShieldGemma, and Gemma Scope—as part of the Google Gemma 2 family. Noteworthy features include Gemma 2 2B, a lightweight text analysis model licensed for research and commercial applications, while Gemma Scope enables developers to hone in on specific areas within a model, and ShieldGemma serves as a safety classifier detecting toxicity in content.
