Outperforming OpenAI: First Success for Video Generation Model
US IT Media: "A Free Model? It's Hard to Believe"
Jack Ma Returns, Bets 75 Trillion KRW Over 3 Years
Largest-Ever AI Investment by a Chinese Private Company
China's giant e-commerce company Alibaba's video generation AI model is gaining attention for its outstanding performance. It is evaluated that with the return of founder Jack Ma, Alibaba has officially entered the global dominance competition in the field of artificial intelligence (AI).
On the 26th (local time), foreign media including the US IT specialized media BGR highly praised the performance of the open-source version of the video generation AI model 'Wan 2.1' as "unbelievable level," analyzing that it will serve as a technical foundation to strengthen Alibaba's position in the global AI market.
Wan 2.1 recorded a high score of 86.22% in the VBench test, a standard for evaluating video generation models, surpassing OpenAI's Sora (84.28%) and Luma (83.61%) to take first place. BGR added, "Alibaba is challenging OpenAI head-on not only in price competitiveness but also in technology," and "the quality of the generated videos is so excellent that it is hard to believe it is a free AI app."
Securing Contact Points with 300,000 Companies and Developers... Plans to Double Taobao AI Application Rate
Alibaba's AI technology is also proven through market penetration. According to a recent Alibaba conference call, more than 290,000 companies and developers are accessing the Qwen API (Application Programming Interface) through its cloud Bailian platform, and Alibaba plans to soon release a deep inference model based on 'Qwen 2.5-Max.'
Alibaba's AI technology is rapidly integrating beyond simple research and development into actual business platforms. According to the Chinese financial media Sina Finance, Alibaba plans to significantly increase the AI function application rate on its Taobao platform from 32% in 2024 to 65% in 2025.
The technological achievements are drawing more attention in conjunction with Alibaba's recently announced large-scale AI investment plan. Alibaba recently announced that it will invest a massive 380 billion yuan (approximately 74.9 trillion KRW) in cloud and AI fields over the next three years. CEO Eddie Wu emphasized during a conference call on the 20th (local time), "This investment exceeds the total amount invested in the past 10 years."
Alibaba AI Chosen by Apple... How Far Does Jack Ma's 'Political Thaw' Influence Go?
Alibaba's large-scale investment and technological advancement in AI were catalyzed by the return of founder Jack Ma. After significantly reducing his activities following criticism of financial regulations in 2020, Ma officially returned by attending a private enterprise forum hosted by President Xi Jinping. His invitation to the forum is interpreted as a strategic decision by authorities to revitalize private enterprises amid China's economic slowdown.
Deng Yiwen, former editor-in-chief of the CCP Central Party School's official publication Xuexi Shibao, described Ma's return as a 'political thaw' in a VOA op-ed, emphasizing its importance. He evaluated, "Jack Ma is a symbol and icon of China's internet economy," explaining that unlike other Chinese entrepreneurs, Ma "succeeded solely on his business acumen without political support." Ma's return is analyzed as a signal showing a directional change in China's technology industry beyond just an individual's comeback.
It is also significant that Apple chose Alibaba as the partner to equip AI technology for the China version of the iPhone, surpassing other Chinese companies. According to The Information, which first reported the cooperation between Alibaba and Apple, Apple reviewed other Chinese AI companies such as DeepSea, Baidu, ByteDance, and Tencent before finally selecting Alibaba. This shows that Alibaba's AI technology is recognized for its competitiveness in the global market. Since Ma's return, Alibaba's stock price has risen by more than 60%.
Alibaba's proactive moves following Jack Ma's return may further intensify the US-China technology competition. An IT industry insider said, "It is worth watching what achievements Alibaba's innovation model, combining Chinese government support and private enterprise technology, will achieve in the global AI market."
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