Alibaba (BABA) has opened its Wan 2.1 AI model, which generates images and videos, to the public. The Wan 2.1 series was launched earlier this year and is the first video generation model capable of supporting text effects in both Chinese and English. So far this year, BABA stock has climbed 58%, driven by optimism surrounding AI adoption and its solid Q3 results for FY25.
More About Alibaba’s Wan 2.1
Alibaba has introduced four versions of Wan 2.1: T2V-1.3B, T2V-14B, I2V-14B-720P, and I2V-14B-480P. These models can create high-quality images and videos based on text and image inputs. The 14B in some variants signifies their ability to process 14 billion parameters, enabling them to handle more data and deliver more precise results.
These models are now accessible worldwide on Alibaba Cloud’s ModelScope and Hugging Face platforms for academic, research, and commercial use. The company previously highlighted Wan 2.1 efficiency in creating realistic visuals by precisely managing complex motions.
Alibaba Steps Up in AI Race
The company’s move to make Wan 2.1 an open-source model is part of its broader strategy to enhance its presence in the increasingly competitive AI (artificial intelligence) industry. Additionally, Alibaba introduced a preview of its reasoning model, QwQ-Max, with plans to make it open-source once the full version is officially released shortly.
Notably, open source refers to software or technology whose source code is freely available for anyone to view, modify, and distribute. Interestingly, open-source projects encourage transparency, innovation, and community-driven development.
Earlier this week, Alibaba unveiled a major $53 billion investment plan over the next three years to boost its AI and cloud computing capabilities. Meanwhile, the company’s CEO, Eddie Wu, emphasized that as AI advances, more AI-generated data will rely on cloud networks, strengthening Alibaba Cloud’s role as key infrastructure.
Is Alibaba Stock a Good Buy Now?
Yesterday, Citi analyst Alicia Yap raised her price target from$138 to $170, while maintaining her Buy rating on BABA stock. Yap is bullish on Alibaba’s AI advancements, including the launch of the Qwen reasoning model, QwQ.
On TipRanks, BABA stock has a Strong Buy consensus rating based on 14 Buys assigned in the last three months. At $165.41, the Alibaba share price target implies a growth rate of 23.43% on the current trading price.
