Alibaba stock rises following AI model buzz

EditorLouis Juricic
Published 28/01/2025, 19:50
© Reuters.

Investing.com -- Shares of Alibaba (NYSE: NYSE:BABA) climbed 2.8% as the company's latest AI model, Qwen2.5-Max, garnered significant interest. The company announced the impressive performance results of the model and the availability of its API through Alibaba Cloud, a move that has caught the attention of both industry insiders and investors.

The rise in Alibaba's stock comes after the tech giant shared details about Qwen2.5-Max, a large-scale Mixture-of-Expert (MoE) model. The model has been pretrained on over 20 trillion tokens and further enhanced with Supervised Fine-Tuning and Reinforcement Learning from Human Feedback methodologies. In a competitive field, Qwen2.5-Max outperformed DeepSeek V3 in several benchmarks, including Arena-Hard and LiveCodeBench, while showing competitive results in others like MMLU-Pro.

Alibaba's announcement also highlighted the model's availability for direct interaction through Qwen Chat and the provision of API access via Alibaba Cloud, suggesting a strategic move to enhance its cloud services' offerings. This development is likely to bolster Alibaba's position in the rapidly growing AI sector and provide additional value to its cloud computing business.

The company's press release outlined the performance of Qwen2.5-Max against other leading models, demonstrating its capabilities in a range of benchmarks crucial to the AI community. The results showed that Alibaba's model has significant advantages, which could lead to further advancements in AI and machine learning.

While Alibaba's press release offered a forward-looking perspective on the potential of their AI model to surpass human intelligence, investors are currently focused on the tangible benefits that the model brings to Alibaba's ecosystem. The release of Qwen2.5-Max through Alibaba Cloud could enhance the company's competitive edge in the cloud computing market, a sector that is increasingly reliant on AI capabilities.

The stock movement reflects investor optimism around Alibaba's technological advancements in AI. As the company continues to innovate and push the boundaries of AI and cloud computing, market watchers will be keenly observing the impact of these developments on Alibaba's financial performance and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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