Alibaba Takes On ChatGPT! Will Qwen Finally Spark a Real BABA Comeback?
Alibaba is back in the AI ring — and this time, the market is reacting.
Shares jumped 5% in pre-market trading after Alibaba confirmed a major overhaul of its “Tongyi” AI system and launched the next-generation Qwen model, positioned directly against ChatGPT.
For the first time in years, investors see Alibaba pushing a coherent, ecosystem-wide AI strategy, not scattered upgrades or one-off demos.
Qwen isn’t just a chatbot upgrade. It’s designed to power:
AI-driven e-commerce
Advertising and search
Cloud enterprise tools
Logistics and supply chain
Content platforms across Alibaba’s ecosystem
If Qwen becomes the AI backbone of Alibaba’s platforms, it could lift not only user engagement — but also margins.
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Cloud Is the Hidden Catalyst
Alibaba Cloud has struggled with restructuring and geopolitical headwinds.
A strong, enterprise-ready Qwen gives Alibaba Cloud something it urgently needed:
A flagship domestic AI model China’s corporates can confidently build on.
With China favouring local AI models and U.S. export limits tightening, Alibaba could see a wave of enterprise adoption by necessity and policy alignment.
If Cloud growth re-accelerates into mid-teens, sentiment around Alibaba could shift sharply.
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Valuation Still Hugely Depressed
Even after the rebound, BABA trades at a valuation closer to a no-growth industrial firm than a top-tier Chinese tech player.
Expectations are extremely low — and that creates opportunity.
A credible AI pivot does not need to be perfect.
It only needs to prove that growth is returning, and the market may rerate the stock rapidly.
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Can BABA Realistically Push Toward $180–$190?
Possible — but it needs sustained catalysts:
clear Qwen adoption metrics
Cloud revenue turning up again
signs that Alibaba’s ecosystem is actually integrating AI across business lines
If all three align, Alibaba’s multi-year discount could unwind at speed.
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