Alibaba Group (NYSE: BABA) is undergoing a significant transformation into an AI-native company, positioning itself for long-term success amid regulatory challenges and competition. The company’s AI initiative, Qwen, is a powerful language model with 235 billion parameters and multilingual capabilities, competing with global tech giants.

Alibaba Cloud is shifting from infrastructure to an AI platform, offering integrated services with its proprietary Qwen models. This move enhances customer lock-in and expands Alibaba’s global presence, challenging competitors like AWS and Microsoft Azure. The shift to AI-native infrastructure could drive long-term growth for Alibaba Cloud.

AI is revolutionizing commerce for Alibaba, improving productivity and efficiency for merchants and consumers. By embedding generative AI across platforms like Taobao and Tmall, Alibaba aims to enhance customer experience and operational efficiency. The company’s focus on AI across its core businesses sets the stage for future growth and competitiveness.

Investors should pay attention to Alibaba’s AI strategy, which could reshape the company’s growth story. From Qwen to cloud services to commerce, Alibaba’s move towards AI is a long-term transformation that may drive significant value for investors. Consider the potential impact of this strategic shift before making investment decisions.

Read more at Nasdaq: Alibaba’s AI Ambitions: 3 Strategic Bets Investors Should Watch Closely