Alibaba Group Holding Limited (NYSE:BABA) shares are trading higher Thursday, buoyed by its artificial intelligence collaboration with Meta Platforms Inc (NASDAQ:META).
Alibaba Cloud added Meta’s Llama 2 LLM to ModelScope, its open-source “model-as-a-service” platform offers over 700 AI models – covering various fields from computer vision to natural language processing and audio – to local developers, SCMP reports.
Alibaba Cloud had tailored services via ModelScope that would enable Chinese developers that use Llama 2 to design and build their AI applications faster.
With Llama 2 available free for research and commercial use, Meta provides developers with an alternative to costly LLMs, such as ChatGPT creator OpenAI’s GPT-4 and GPT-3.5.
Alibaba proposed to provide funding and other forms of support to these businesses.
Also, China’s central bank called on the financial sector to help fund technology research and M&A deals, which could significantly boost the industry.
It comes especially at a time when firms are heavily investing in AI.
China will explore the creation of a platform through which smaller tech firms can borrow via high-yield bonds, Bloomberg reports.
On Wednesday, Meta Platforms reported second-quarter revenue of $32 billion, up 11% year-over-year, ahead of a Street consensus estimate of $31.12 billion.
Earnings per share totaled $2.98 in the second quarter, beating a Street consensus estimate of $2.91. The company said it continues to invest in AI, with Llama 2 getting a special mention.
In Q4, Alibaba Cloud revenue decreased by 2% Y/Y to $2.71, reflecting delays in the delivery of hybrid cloud projects given the COVID-19 resurgence in January, the normalization of CDN demand, and the impact from a top customer phasing out using its overseas cloud services for its international business. Cloud formed 9% of the company’s total revenue.
Price Action: BABA shares traded higher by 0.37% at $97.56 on the last check Thursday.
