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Alibaba launches new version of AI assistant tool as competition heats up

1. Alibaba launched a new AI assistant app powered by Qwen AI. 2. Company invests $52.5 billion in cloud computing and AI infrastructure. 3. Adapting to competition following DeepSeek's R1 model release. 4. Strategic partnership with Manus AI aims to enhance AI capabilities. 5. Alibaba shares fell 2.45% to 131.5 HKD after the announcement.

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FAQ

Why Bullish?

While shares declined recently, significant AI advancements can yield long-term gains. Historical examples include tech firms seeing stock rebounds following strategic tech investments.

How important is it?

The article highlights strategic advancements in AI, which is critical for future earnings potential.

Why Long Term?

Investments in AI and cloud computing often result in prolonged growth and returns, as seen with Amazon and Microsoft over multiple quarters.

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