Alibaba (NYSE:BABA) stock is on the move Wednesday as investors react to news of it testing an AI tool to rival ChatGPT.
Alibaba spoke about its plans to develop a ChatGPT competitor in a statement. That followed reports claiming the company was working on such a tool. The latest update is Alibaba currently putting the tool through internal testing.
Here’s a portion of what an Alibaba spokesperson said in their AI statement:
“Frontier innovations such as large language models and generative AI have been our focused areas since the formation of DAMO in 2017. As a technology leader, we will continue to invest in turning cutting-edge innovations into value-added applications for our customers as well as their end-users through cloud services.”
It’s worth pointing out that major tech companies are behind the recent interest in AI. Microsoft (NASDAQ:MSFT) recently invested heavily into OpenAI, the creator of ChatGPT. The company plans to add ChatGPT to its Bing search engine. Also, Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) has revealed plans to create its own ChatGPT rival, Reuters notes.
What This Means for BABA Stock
Investors are showing an increased interest in AI stocks lately. That’s seen several companies in the space rally these last couple of weeks. If that momentum continues, it’s likely BABA stock will rise alongside other AI stocks.
BABA stock is up 2% as of Wednesday morning.
Investors can find more of the latest stock market news at the following links!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.