Shares in Chinese tech group Alibaba (BABA) were higher today on reports that it is set to launch an improved AI model to challenge domestic and U.S. rivals.
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Launch Could Come This Month
According to a report in Bloomberg, Alibaba is preparing to unveil Qwen 3, an improved version of its primary AI model. The new offering is likely to be available later this month although the exact timing of the launch is not yet clear.
Alibaba is on an AI drive releasing a raft of products since the start of the year. This has included a new model in its Qwen 2.5 series which is capable of processing text, pictures, audio and video and be used directly on mobile phones and laptops. In addition, Alibaba launched a new version of its AI assistant Quark app last month.
The global AI race has intensified this year with rivals such as Chinese peer DeepSeek introducing low-cost but just as effective AI models. This has spurred a whole host of low-cost AI services and products from China in recent weeks. It is understood that DeepSeek plans to release its next-generation model before May.
Chinese State Support
Chinese tech firms have also been helped by authorities including President Xi restoking their support and enthusiasm for private sector companies after many years left out in the cold. This is to support what it sees as an ailing domestic economy but also to throw down a more powerful challenge to U.S. tech in a time of greater volatility resulting from Trump’s tariffs war.
Overall, Alibaba is focused on capturing the huge opportunities in the AI space. The company recently announced a plan to invest $53 billion in AI infrastructure and cloud computing over the next three years.
Is BABA a Good Stock to Buy Now?
On TipRanks, BABA has a Strong Buy consensus based on 16 Buy ratings. Its highest price target is $190. BABA stock’s consensus price target is $167.48 implying a 26.08% update.
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