Alibaba Shares Gain as Meta Adopts Its AI Technology

Alibaba Group has secured a significant strategic win, with Meta Platforms announcing it will utilize Alibaba's open-source Qwen artificial intelligence model. The Chinese tech giant's stock advanced approximately 2% on the news, which coincides with an internal promotion underscoring AI's central role in corporate strategy.

In a move signaling the paramount importance of artificial intelligence, Alibaba has appointed Zhou Jingren to its powerful Alibaba Partnership. Zhou, the Chief Technology Officer of Alibaba Cloud, is the first executive to join this 18-member body primarily due to his AI expertise. He oversees the development of the Tongyi large language models and the proprietary cloud operating system, Apsara. The partnership holds considerable influence, nominating the majority of the company's board of directors.

The promotion aligns with Meta's decision to integrate the Qwen model into the development of its commercial AI project, codenamed "Avocado," slated for launch in early 2026. Qwen will serve as a foundational training model alongside Google's Gemma. For Alibaba, this endorsement from a leading global tech firm validates its open-source approach, which forgoes immediate licensing fees in favor of establishing its technology as a widespread standard. The strategy appears effective, with Alibaba now commanding roughly a 30% share in the AI model market.

Should investors sell immediately? Or is it worth buying Alibaba?

Portfolio Strength and Financial Performance

Further positive momentum stems from reports that two Alibaba-backed AI unicorns, MiniMax and Zhipu AI, are preparing for initial public offerings in Hong Kong. Market sources suggest the listings could occur as soon as January 2026. Successful IPOs of these substantial holdings would likely deliver considerable paper gains and strengthen Alibaba's balance sheet.

These developments fit within a broader pattern of robust growth. Alibaba Cloud recently reported a 34% year-over-year revenue increase, powered by triple-digit growth in its AI-related services for the eighth consecutive quarter. The company's shares have rallied nearly 75% since the start of the year, a recovery that has erased the losses of prior weaker periods.

Technical Analysis Perspective

From a charting standpoint, Alibaba's stock is currently testing resistance around the $163 USD level. A sustained breakout above this point could pave the way for a move toward $170—a price zone not seen since the onset of intensified regulatory scrutiny. Support is currently positioned at the 50-day moving average, while the $150 threshold remains a key psychological level for investors.