Alibaba Launches Two Open-Source AI Models, Poses Challenge to Meta’s Llama 2
Key takeaways
- Alibaba has launched two new open-sourced LLMs
- It’s the first time a Chinese company has done so, which mirrors Meta’s launch of its Llama 2 LLM the month before
- Alibaba shares rose 3% at the announcement
What’s better than launching your own AI model to take on Meta? Launching two, of course. That’s the approach Chinese conglomerate Alibaba is taking in a bid to gain market share in the white-hot AI race.
Aimed at enterprise clients, the AI models promise to be a worthy competitor to Meta’s recently released AI model. Here’s what we know so far and what Wall Street thought of it.
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What’s Alibaba’s latest AI move?
Alibaba has launched new AI large language models (LLMs), Qwen-7B and Qwen-7B-Chat, which are smaller versions of the previously announced Tongyi Qianwen AI model. Aimed at small to medium-sized businesses, companies can develop their own AI chatbots and more using the tech.
The models are also open source — so anyone with the skills can access the code. It’s the first time a Chinese company has open-sourced its LLM. However, there’s at least one significant restriction to its use: only businesses with 100 million monthly active users can get the license required to access the shiny new tech.
The move is a clear shot fired at Meta, who unveiled a similar proposition last month. Meta’s Llama 2 is the Big Tech titan’s open-source LLM, but it requires 700 million active users to access it.
What was the market reaction?
Chinese tech stocks stumbled earlier this week at the Cyberspace Administration of China, stating that young people’s screen time should be limited to two hours a day, plus Fitch Ratings downgrading the U.S. position sparked a global dip in the stock markets.
But the AI news was the shot in the arm the stock needed. Alibaba’s share price rose nearly 3% on the New York Stock Exchange, and the Chinese tech giant has climbed nearly 6.4% in the last year.
Meta has the share price edge, having undergone a ‘year of efficiency’ and capitalizing on the AI hype to send the stock soaring 151% since the year began.
The bottom line
Alibaba’s not the only Chinese company competing for a slice of the AI-generated pie, but it’s the first to go open source. Judging by the investor reaction, it should be a boon for the company’s bid to be a major player on the global AI stage.
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