Key Points

  • Alibaba is developing its own AI chatbot rival to ChatGPT.
  • The company has been working on generative AI technology since 2017.
  • Alibaba shares jumped 3% in pre-market trade in the US.
  • The move comes as technology companies globally look to capitalize on the excitement generated by ChatGPT.
  • Alibaba hinted that its chatbot could be integrated into its products and cloud services

Alibaba, the Chinese e-commerce giant, is entering the chatbot race by developing its own AI-powered chatbot, a rival to OpenAI's ChatGPT.

The company stated that it has been working on generative AI since 2017 and is currently undergoing internal testing for its ChatGPT-style technology.

Alibaba (TwitteR)

Why Now Alibaba?

The move comes as ChatGPT has sparked an AI arms race among the world's biggest tech companies, including Microsoft and Google.

Microsoft recently invested in OpenAI and announced an AI-powered Bing search engine and Edge browser that will be underpinned by ChatGPT technology. Google responded with its own chatbot technology called Bard. Baidu, the Chinese search giant, is also testing its own chatbot called "Ernie bot" in English and "Wenxin Yiyan" in Chinese, which sent its shares soaring.

An Alibaba spokesperson stated that the company will continue to invest in cutting-edge innovations to turn them into value-added applications for its customers through cloud services.

Additionally, NetEase, one of China's largest gaming firms, announced that its education subsidiary Youdao has been working on generative AI and is looking at using large language models in its education productions. However, the company did not mention whether it would launch a ChatGPT rival.

Alibaba (Twitter)

The Impact of the Announcement

The announcement of Alibaba's own AI chatbot has had a significant impact on the company's stock. In pre-market trade in the US, Alibaba shares jumped by 3% following the news. This positive reaction from investors highlights the excitement surrounding the development of new AI technology and the potential for this technology to drive growth and increase profitability for companies in the sector.

The development of a ChatGPT rival from Alibaba not only has the potential to drive growth for the company, but it also positions Alibaba as a major player in the rapidly expanding AI market. The integration of the chatbot into Alibaba's existing products and cloud services could open up new revenue streams and expand the company's offerings in the technology space.

As such, the impact of this announcement could be far-reaching and could help to establish Alibaba as a leader in the development and implementation of AI technology.

ChatGPT Leading the Way

ChatGPT falls into the category of generative AI, a type of AI that can create text or images. It is powered by a large language model and uses vast amounts of data to understand and generate conversation.

The global tech industry is jumping on the ChatGPT excitement, and Alibaba is joining the fray with its own AI-powered chatbot.

Investors are excited about the potential of chatbot technology, as evidenced by the surge in shares for companies such as Baidu. The race to develop the next big thing in AI chatbots is underway, and it will be interesting to see what Alibaba's entry into the market brings to the table.

About Alibaba Group Holding Ltd

  • Ticker BABA
  • Exchange NYSE
  • Sector Consumer Cyclical
  • Industry Internet Retail
  • Shares Outstandng 2,647,539,968
  • Market Cap $183B
  • Description
  • Alibaba Group Holding Limited, through its subsidiaries, provides technology infrastructure and marketing reach to help merchants, brands, retailers, and other businesses to engage with their users and customers in the People's Republic of China and internationally. The company operates through seven segments: China Commerce, International Comme...
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