Alibaba increases the intensity of competition in artificial intelligence by reducing its prices by 85%

The giant Chinese technology company, Alibaba, announced that it has reduced the prices of its large language models by up to 85%, in what is considered a major development, and indicates an intense competition with major American artificial intelligence manufacturers, according to what was reported by the American network CNBC.

Alibaba model discounts

Alibaba Cloud, the cloud computing division of the Hangzhou-based e-commerce giant, said in a post on China’s social media platform WeChat that it is offering price cuts on its large visual language model, which it calls “Kion-VL.” .
Read also: Google uses the AI ​​Cloud model to improve “Gemini”
The giant Chinese company worked on its model of the language of digital intelligence to be able to compete with major American companies such as NVIDIA, Microsoft, Google, Meta, and others, choosing to design its model to have the ability to perceive and understand texts and images.

Alibaba shares

However, Alibaba shares did not witness significant movements after the announcement of this matter, as they closed with an increase of 0.5% on the last trading day of the year on the Hong Kong stock exchanges.
Read also:
However, the price cut demonstrates how the race is increasing between China’s giant technology companies to win more business for emerging artificial intelligence products and also places them in a growing global position that is expanding over time when compared to their American counterparts. Chinese companies once again confirm their competitive position over America in the field of digital intelligence. .

Chinese technology companies

Major Chinese technology companies, including Alibaba, Tencent, Baidu, and others, are in intense competition in this field.
Huawei and ByteDance, TikTok’s parent company, have also launched large language models of their own over the past 18 months in an attempt to capitalize on the buzz around the technology.

Reducing the prices of artificial intelligence products

This is not the first time that Alibaba has announced price cuts to encourage companies to use artificial intelligence products. In February, the company announced price cuts of up to 55% on a wide range of cloud computing products.
Most recently, in May, the company cut prices for its AI model Kion by up to 97% in an attempt to boost demand.

Big language models

Large Language Models, or LLMS, are artificial intelligence models that are trained on vast amounts of data to generate human-like responses to user queries and requests, and they form the basis of today’s generative AI systems, such as the popular chatbot ChatGBT developed by… OpenAI powered by Microsoft.