Alibaba Group is intensifying its commitment to artificial intelligence, unveiling a new video generation model designed to set a fresh technological benchmark. The launch of “Wan2.6” (Wanxiang 2.6) represents a strategic push into the competitive AI video sector, directly challenging rivals like ByteDance. The core innovation addresses a persistent challenge in AI-generated content: maintaining consistent character appearance and voice across multiple video scenes.
A Strategic Push into Multimodal AI
This development arrives at a pivotal moment in China’s tech sector. The focus of the “AI war” is shifting from large language models (LLMs) to the more complex domain of multimodal video generation. By rapidly iterating to version 2.6, Alibaba, under CEO Eddie Wu, aims to demonstrate an accelerated development cycle and dispel concerns about lagging behind global competitors.
The “Reference-to-Video” (R2V) capability is central to Wan2.6. This function allows users to create videos where their own likeness and voice remain uniform throughout different shots. Alibaba claims this is the first model in the Chinese market to ensure such consistency in both visual and auditory elements, solving a specific problem for content creators and advertisers who have grappled with inconsistent AI outputs. The model is being integrated immediately into the Alibaba Cloud’s “Bailian” platform for direct access by developers and enterprise clients.
Market Sentiment Lags Technological Progress
Despite the technological announcement, investor confidence remains subdued, as reflected in the recent stock performance. Shares are currently trading at €125.60, marking a daily decline of 1.72%. The stock has been under technical pressure, losing 7.78% over the past 30 days and widening its gap below the 50-day moving average to nearly 10%.
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A notable technical indicator, however, is the Relative Strength Index (RSI), which now reads 29.4, placing it in oversold territory. This suggests the recent selling pressure may have been overdone in the short term, particularly if fundamental catalysts like this product launch gain market traction.
Broader Portfolio Expansion
Concurrently, Alibaba is broadening its AI portfolio with the app release of “88Cha.” This business intelligence platform merges free basic data with AI-powered analytics, aiming to streamline due diligence processes and embed AI deeper into daily business operations.
All Eyes on the Official Launch
The market’s attention now turns to Wednesday, December 17, 2025, for the official global launch event. Alibaba is expected to present live demonstrations of Wan2.6 and disclose pricing details for its API interfaces. For investors, the critical question will be how swiftly these technological advances can translate into tangible cloud revenue growth and whether they will strengthen Alibaba’s position in China’s fiercely competitive AI market.
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