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Alibaba (BABA) Intensifies Chatbot Battle With Tongyi Qianwen

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Alibaba (BABA - Free Report) , similar to other tech behemoths, has been making efforts to establish itself in the race for generative AI-powered chatbots.

The company’s latest introduction of Tongyi Qianwen, its large language model, attests to the aforesaid fact.

The recent move of Alibaba adds to the rival list for ChatGPT, a chatbot from the Microsoft-backed startup OpenAI, which has taken the world by storm.

Reportedly, Alibaba’s chatbot is currently available for beta testing. The company has opened registration for businesses to test Tongyi Qianwen’s chatbot.

A formal launch of the latest chatbot is pending.

Chatbot Holds Promise

Apart from coming up with a rival for ChatGPT, the latest move holds immense growth prospects in this data-driven world.

The growing proliferation of ChatGPT and its rapid deployment by several businesses hint that generative AI is the key to success in the near future.

According to a report by The Brainy Insights, the market for generative AI is expected to reach $188.62 billion by 2032, seeing a CAGR of 36.1% between 2022 and 2032.

Per a Grand View Research report, the market is likely to hit $109.4 billion by 2030, witnessing a CAGR of 34.6% between 2022 and 2030.

A Precedence Research report indicates that the global chatbot market will reach $4.9 billion by 2032, seeing a CAGR of 19.3% between 2023 and 2032.

Alibaba, currently carrying a Zacks Rank #3 (Hold), is well-poised to capitalize on these growth prospects on the back of Tongyi Qianwen.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Alibaba’s deepening focus on this promising technology is likely to boost its prospects, helping it win investors’ confidence.

Notably, BABA has gained 16.7% in the year-to-date period, outperforming the industry’s growth of 15.1%.

Growing Competition

Alibaba’s latest move has intensified the chatbot battle. Other tech giants like Alphabet’s Google (GOOGL - Free Report) , Baidu (BIDU - Free Report) and Amazon (AMZN - Free Report) are making concerted efforts to beat Microsoft in this game.

Google recently launched its much-awaited chatbot named Bard, which is characterized as a product that enables the collaboration of users with generative AI. Bard is based on Google’s Language Model for Dialogue Applications and produces blocks of text instantly.

GOOGL's chatbot responds to complicated or open-ended questions in the form of chats and can handle follow-up questions in a conversational manner like ChatGPT.

Baidu introduced its AI-powered chatbot called Ernie Bot, which is capable of solving mathematics queries, responding to questions regarding Chinese literature, and generating images and videos. Further, the chatbot has the ability to generate audio in different Chinese dialects. It is also fluent in Chinese idioms and holds expertise in business writing.

Meanwhile, Amazon released its language model claimed to be better than OpenAI’s GPT-3.5 in terms of performance in ScienceQA — a large set of multimodal science questions with annotated answers.

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