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Alibaba moves onto Tencent’s turf with new AI model for 3D video

Luz Ding / Bloomberg
Luz Ding / Bloomberg • 2 min read
Alibaba moves onto Tencent’s turf with new AI model for 3D video
Alibaba has set a bold target of quintupling annual cloud and AI revenue to US$100 billion in five years.
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(April 16): Alibaba Group Holding Ltd launched a new AI model that can be used to develop games and generate videos simulating the real world, expanding its suite of products to challenge Tencent Holdings Ltd as it looks to monetise the technology.

The Chinese e-commerce firm on Thursday unveiled Happy Oyster, a so-called world model that can create 3D environments and interactive videos. It can be used to produce films, video content and games, the company said.

Alibaba has set a bold target of quintupling annual cloud and AI revenue to US$100 billion in five years. In recent weeks, the company has aggressively launched a series of new AI models and revamped its organisation in a bid to refocus efforts on making money from the technology and recoup some of its investment.

The new model unveiled on Thursday was developed by the Alibaba Token Hub, a newly created business unit, the company said in a post on X. The tool is so far only available on a limited early-access basis, Alibaba said.

Last week, the company revealed it created the Happy Horse video-generation model that sent ripples across China’s AI industry, claiming ownership of a platform that topped global rankings on debut.

World models are aimed at recreating real-world physics and spatial properties, setting the foundation for 3D content. They are also used to train robots and enhance environmental recognition in autonomous vehicles. Tencent has its own Hunyuan3D series of open-source world models, while Alphabet Inc’s Google operates the Genie model.

See also: Nvidia’s Huang says Mythos shows need for US-China AI dialogue

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