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Alibaba (NYSE:BABA) is going all-in on artificial general intelligence (AGI). CEO Eddie Wu made it clear on Thursday's earnings call that AGI is at the core of the company's AI strategy.
Our first and foremost goal is to pursue AGI, Wu said, emphasizing Alibaba's commitment to pushing the boundaries of intelligence. Over the next three years, the company plans to invest heavily in three areas: AI infrastructure, foundation models, and AI-powered business transformation. Investors seemed to like what they heard.
Alibaba's stock jumped 8% on Thursday after its third-quarter results beat expectations. It's also up about 4% in premarket trading Friday. The Chinese e-commerce giant has been working to keep pace with both Western and local AI competitors. Last month, Alibaba launched its Qwen2.5-VL model, which it claims outperformed OpenAI's GPT-4o, Amazon (NASDAQ:AMZN)-backed Anthropic's Claude 3.5 Sonnet, and Google's (NASDAQ:GOOG) Gemini 2.0 Flash in areas like math, document analysis, and video analysis.
Meanwhile, OpenAI recently introduced a deep research feature in ChatGPT, a step toward its broader AGI ambitions. The company also announced it had 400 million weekly active users as of Februarythough its AI technology remains unavailable in China.
This article first appeared on GuruFocus.