Alibaba Shares Slide Amid AI Navigation Uncertainty
Alibaba Group Holding Ltd. (BABA) shares fell 3% this week as investors questioned the commercial viability of its FantasyWorld AI project. The navigation division Amap faces scrutiny over whether its benchmark-leading AI models can translate to real-world applications.
While Amap's GitHub activity shows aggressive hiring for world modeling specialists - signaling long-term AI ambitions - the lack of clear API access or integration timelines with Alibaba's Qwen app creates near-term uncertainty. The unit's six research areas, from autonomous driving to embodied intelligence, suggest transformative potential that remains years from monetization.
Market reaction reflects the tension between Alibaba's proven e-commerce cash flows and its high-risk, high-reward bets on spatial computing. As one fund manager noted: 'Navigation AI is either the next app store or a very expensive map feature.'
