Alibaba (9988.HK, BABA), the e-commerce giant, saw its Hong Kong-listed shares surge 5.5% on Monday following the company’s denial of reports regarding a potential investment in Chinese artificial intelligence developer, DeepSeek.
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Alibaba Refutes Investment Rumors
On Friday, Chinese news outlet The Paper reported that an Alibaba executive refuted claims of an investment in DeepSeek. The report, citing a WeChat post by Alibaba vice president Yan Qiao, stated that while Alibaba admires DeepSeek as a fellow Chinese and Hangzhou-based company, the circulating news about an investment is false. This clarification comes on the heels of Alibaba’s recent release of its upgraded AI model, Qwen 2.5, which the company claims outperforms DeepSeek’s V3 model. Alibaba has declined to provide further comment on the matter.
DeepSeek’s Impact on the Tech Sector
DeepSeek’s advancements in AI had previously sent ripples through the tech industry in late January, sparking concerns about increased spending in the AI sector by major US tech companies. The speculation surrounding Alibaba’s involvement further amplified these anxieties. Alibaba’s denial, therefore, provides some relief to investors, contributing to the positive movement in its stock price.
Conclusion: Alibaba’s Strategic Focus on AI Development
Alibaba’s denial of the DeepSeek investment underscores the company’s independent pursuit of AI innovation. With the recent launch of Qwen 2.5, Alibaba is demonstrating its commitment to developing its own cutting-edge AI capabilities. The positive market response to the denial suggests investor confidence in Alibaba’s strategic direction and its potential to compete in the rapidly evolving AI landscape. This event highlights the importance of accurate information in the financial markets and the significant impact of AI developments on investor sentiment.
