Alibaba International promotes its e-commerce platform for small businesses at the Canton Fair in Guangdong, China, on Oct. 16, 2024.
Vcg | Visual China Group | Getty Images
BEIJING — Chinese e-commerce giant Alibaba on Tuesday unveiled an artificial intelligence-powered search engine for small businesses in Europe and the Americas to source supplies.
It’s an attempt to leverage ChatGPT-like tech to increase sales. Initial tests showed businesses’ purchase intent using the new tool increased by 40% versus traditional search engines, according to Kuo Zhang, president of Alibaba.com and vice president of Alibaba International.
The product is called Accio, after the spell used in the Harry Potter fantasy series for summoning objects. The initial version is web-based and supports English, German, French, Portuguese and Spanish, according to the company.
With a few text or image prompts, businesses can use Accio to find wholesale products — including analysis on their popularity with consumers and projected profit, according to demos viewed by CNBC.
Examples shown included helping a sports entrepreneur to build a line of pickleball products. At the end of the search, the tool lists a number of procurement options for the business to discuss directly with each supplier.
The tech uses generative AI from Alibaba’s Tongyi Qianwen large language model, Zhang said, declining to confirm whether the product integrates AI from other companies.
An LLM is an artificial intelligence model trained on large amounts of data. A model supports generative AI applications, such as OpenAI’s ChatGPT, which generates human-like responses to user prompts. To be sure, several businesses are still in the experimentation phase with AI and many firms are yet to find a way of monetizing the technology.
Accio uses data from 50 million businesses on Alibaba International’s platform, and publicly available industry information, Zhang said. He said the tool incorporates 1 billion product listings and documents covering industries across more than 100 markets from Alibaba.com, the company’s business-to-business platform which sells to companies outside China.
Businesses based in Europe and North America are the largest group of buyers, the company said.
The international business has grown rapidly in recent years, but Alibaba’s main revenue driver remains its domestic e-commerce platforms Taobao and Tmall. In August 2023, management told investors that “the Taobao app has the greatest potential to become a one stop smart portal for life and consumption enabled by AI.”
During the weeks-long Singles Day shopping festival that wrapped up Monday, more than half of over 500 merchants selling on Chinese e-commerce platforms such as Alibaba and JD.com used a generative AI-enabled tool, according to a survey by Bain & Company.
Those features include AI for customer service and generating content. The survey found 56% of respondents said AI tools had “high positive impact” on improving productivity.
Alibaba is scheduled to report quarterly results on Friday.
Pictured here is an AI-generated clip from Vidu’s website. The tool can create videos from text or image prompts.
Evelyn Cheng | CNBC
BEIJING — Beijing-based Shengshu Technology on Wednesday said that its artificial intelligence-powered text-to-video tool Vidu will now be able to generate videos by combining images.
Vidu already allows users worldwide to create 8-second clips based on written prompts. While OpenAI — the maker of ChatGPT — in February revealed that its AI model Sora could generate one-minute videos from text, it has yet to release that publicly.
Vidu’s new AI feature can combine three pictures — such as a shirt, person and moped — into a video of the person wearing the shirt and driving the moped through a scene, Shengshu said.
Other platforms claim they can turn text or images into videos using AI, but the quality of output varies. The breakthrough that Shengshu claims is the ability to take three unique images and integrate them with visual consistency into an AI-generated video.
“Very early on we pinpointed [visual consistency] as the problem, and wanted to solve it well,” Fan Bao, chief technology officer at Shengshu, said in Mandarin, translated by CNBC.
Vidu launched in April and its ability to turn two profile photos into lifelike videos of people hugging went viral on TikTok.
The AI video generator is already making money from advertisers, animators and other businesses, Shengshu co-founder and CEO Jiayu Tang said in Mandarin, according to a CNBC translation. He said monthly usage rates per customer can range from 100,000 yuan to 1 million yuan ($13,871 to $138,711).
To address copyright issues, Tang said a company might sign a deal with an artist that allows the AI to mimic the artist’s style of painting for an advertisement. He said he hadn’t seen significant legal cases around consumers’ use of images.
Tang added that Vidu doesn’t allow the public to generate content using images of celebrities or “sensitive” individuals. He said the AI tool also bans nudes and violent images. As for personal photos, Tang said Vidu destroys the data in accordance with general data protection regulation — a global benchmark.
Shengshu was founded last year with backers including Baidu Ventures, Alibaba-affiliate Ant Group, Chinese startup Zhipu AI, Qiming Venture Partners and Beijing city, according to PitchBook.
Tang said Vidu’s AI runs off rented cloud servers in China and abroad.
Check out the companies making headlines in extended trading. CNH Industrial — Shares popped nearly 8% after Greenlight Capital’s David Einhorn at CNBC’s Delivering Alpha conference told attendees he took a medium-sized position in the agricultural equipment company. Cisco Systems — Shares inched lower by less than 1% even after Cisco Systems posted a beat on the top and bottom lines in the fiscal first quarter. The San Jose, California-based tech company reported adjusted earnings of 91 per share on revenue of $13.84 billion. Analysts polled by LSEG forecast earnings of 87 cents per share on revenue of $13.77 billion. Ibotta — Shares tumbled nearly 17% even after a third-quarter beat on the top and bottom lines. The cash-back rewards platform reported third-quarter earnings of 51 cents per share on revenue of $98.6 million. Analysts surveyed by LSEG expected earnings of 35 cents per share on revenue of $94.1 million. Beazer Homes USA — Shares surged about 12% after the Atlanta-based homebuilder posted October sales that rose more than 30% compared to the prior year, reflecting a “growing community count,” the company said. Beazer Homes USA reported fiscal fourth-quarter results, with earnings of $1.69 per share on revenue of $806 million, results that were not comparable with Street estimates due to weak coverage of the stock. Sonos — Shares ticked down by less than 1% after the audio equipment maker posted fourth-quarter results. Sonos reported a loss of 44 cents per share on revenue of $255.4 million. The results were not comparable due to thin coverage.
Check out the companies making headlines in midday trading. Charter Communications , Liberty Broadband — Cable operator Charter Communications agreed to acquire Liberty Broadband in an all-stock deal. Charter shares rose 5.6%, while Liberty Broadband slid 3%. Cava Group — Shares of the Mediterranean-inspired food chain popped 7% after third-quarter results came out stronger than expected. Cava’s earnings of 15 cents per share exceeded the 11 cent consensus estimate from analysts polled by LSEG, while its revenue of $244 million revenue came out above the $234 million estimate. Rocket Lab — Shares of the space infrastructure company soared 35% after Rocket Lab posted a third-quarter revenue of $104.8 million, which exceeded analysts’ expectations and reflected a 55% increase from the same period a year ago. The company also announced the first customer for its Neutron vehicle and forecast revenue for its fourth quarter in a range above what analysts had predicted. Maplebear — Shares tumbled 12% after the parent of Instacart issued fourth-quarter adjusted earnings before interest, taxes, depreciation and amortization guidance that was below the Street’s estimates, according to FactSet. On the other hand, Maplebear beat analysts’ third-quarter expectations on both the top and bottom lines. Skyworks Solutions — The semiconductor stock pulled back 4% after Skyworks Solutions posted weaker-than-expected guidance for its fiscal first quarter. The company sees revenue for the period ranging from $1.05 billion to $1.08 billion, while analysts polled by FactSet sought $1.09 billion. Flutter Entertainment — Shares of the online gambling company rose 6% after a stronger-than-expected report for the third quarter. Flutter generated an adjusted 43 cents per share on $3.25 billion of revenue. Analysts surveyed by LSEG had estimated 10 cents per share and $3.07 billion of revenue. Flutter said that revenue for its U.S. arm , which includes Fanduel, was up 51% year over year. Spotify Technology — Shares of the music streaming platform gained 11% after Spotiify’s fourth-quarter profit forecast exceeded analysts’ estimates. The company’s monthly active users in the third quarter also came out strong, totaling about 640 million, or up 11% from a year earlier and above the 639 million analysts had forecast, according to FactSet. Spotify’s third-quarter earnings and revenue trailed expectations, however. Rivian Automotive — Shares popped about 18% after the automaker announced a joint venture with Volkswagen Group in a deal worth $5.8 billion, with the first Volkswagen models to use Rivian’s software and electrical architecture potentially arriving as early as 2027. Amgen — Shares gained 1% after the drugmaker said it did not see a link between the use of MariTide , its experimental weight loss injection, and changes in bone mineral density. Amgen lost 7% in the previous session after analysts cited additional data from an early-stage trial showed the highest dose of MariTide was linked to loss of bone mineral density. SoundHound AI — The voice recognition stock plunged about 17%. SoundHound issued revenue guidance for 2024 of $82 million to $85 million, while analysts polled by FactSet sought $82.6 million. The company posted a third-quarter adjusted loss of 4 cents a share, compared to the Street’s expectation for a loss of 7 cents per share. Spirit Airlines — Shares cratered 57% after The Wall Street Journal reported that the budget airline could file for bankruptcy within weeks following failed merger talks with competitor Frontier Group Holdings. — CNBC’s Sarah Min, Alex Harring, Samantha Subin, Jesse Pound, Yun Li, Lisa Kailai Han and Michelle Fox contributed reporting.