Alibaba is making significant strides in the realm of technological innovation by focusing on generative AI, leading to a remarkable triple-digit growth in AI-related revenues during Q4 fiscal 2024.
The company’s Cloud Intelligence Group has introduced the “AI programmer,” a cutting-edge tool powered by its proprietary large language model (LLM). This innovative tool assists developers in accelerating application development processes. It combines the roles of a software architect, a development engineer, and a test engineer.
The generative AI market is estimated to get to $356.10 billion by 2030. It is expected to showcase a robust compound annual growth rate (CAGR) of 46.5% from 2024 to 2030. Alibaba’s portfolio of generative AI-driven solutions is expanding. This makes them well-positioned to take advantage of future growth opportunities.
Moreover, Alibaba recently unveiled Qwen2.5, an enhanced version of its LLM family, Tongyi Qianwen. Qwen2.5 boasts significant enhancements in reasoning, code comprehension, and textual understanding. Additionally, the company updated Model Studio, its AI model and application development platform, to offer a wider array of models and advanced AI tools.
In addition, Tongyi Lingma, Alibaba’s AI programming assistant, has proven to be a game-changer in software development efficiency. It slashed the test code implementation time by over 70% and streamlined developers’ workflows.
Alibaba faces fierce competition. Despite this, the company continues to benefit from its strong performance in the international commerce, retail, and wholesale sectors. They also benefit from the expansion of China’s wholesale commerce business.
The Zacks Consensus Estimate for total revenues in 2025 is pegged at $138.63 billion, showing a year-over-year growth of 6.2%. Alibaba has a Zacks rank of #3.
