Alibaba Restructures for AI ‘Super App’ Development, Pursues Nvidia’s Advanced Chip Technology – Alibaba Group Holdings (NYSE:BABA)

Alibaba Group Holding Limited (NYSE:BABA) has announced a strategic reorganization to enhance its Qwen family of AI models for consumers. The new Qwen Consumer Business Group, led by Wu Jia, will unify Alibaba’s AI chatbot, Quark assistant, cloud solutions, and hardware, aiming to establish Qwen as the “super app” across various devices, including smartphones and wearables. The Qwen app recently gained millions of beta downloads, reflecting its rising popularity. However, Alibaba faces challenges sourcing high-performance Nvidia chips necessary for AI training, particularly the H200, following regulatory uncertainties regarding imports to China. This could delay product development and force reliance on partnerships and domestic alternatives. Despite these challenges, Alibaba’s stock has surged 84% year-to-date, with shares up 0.72% at $157.08 during premarket trading. As the new division aims to integrate AI into hardware capabilities like smart glasses and in-car systems, Alibaba’s innovation roadmap remains promising yet complex.

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