Alibaba's New AI Glasses Let You Pay, Navigate, And More

Alibaba Group Holding (NYSE:BABA) has entered China’s competitive smart glasses market, unveiling its first AI-powered wearable, Quark AI glasses, at the World Artificial Intelligence Conference in Shanghai.

The glasses, named after Alibaba’s AI assistant, mark the tech giant’s debut in this fast-growing space. Alibaba said it completed development and plans to launch the glasses later this year, SCMP reported on Saturday.

The device runs on Qualcomm’s (NASDAQ:QCOM) Snapdragon AR1 chip and dual operating systems, offering real-time interaction with Alibaba’s ecosystem, including Alipay, Taobao, and Amap. Users can scan QR codes to pay, check prices, and get navigation assistance while walking or biking.

Also Read: Apple’s Upcoming Chip Aims To Challenge Meta In Smart Glasses Battle: Report

“AI glasses will become the most important form of wearable intelligence,” said Song Gang, head of Alibaba’s smart terminal unit, adding that the company designed the product to solve issues like short battery life and weak AI functionality. The frame and temples are thinner than industry standards.

The entrance of Alibaba intensifies the already heated competition among Big Tech titans in the smart glasses arena. Analyst Ming-Chi Kuo has previously noted Apple’s (NASDAQ:AAPL) potential to surpass Meta Platforms’ (NASDAQ:META) Ray-Ban smart glasses, despite what he perceives as a slow pace in Apple’s development.

Kuo’s research indicates that Apple is actively pursuing at least seven head-mounted projects, with rollouts projected to commence from 2027 onwards.

This aggressive push from Apple comes amidst lingering market skepticism regarding its innovation velocity, particularly when juxtaposed against rivals like Meta and Alphabet (NASDAQ:GOOGL).

Nevertheless, Kuo views Apple’s renewed emphasis on hardware as a favorable development for both the supply chain and the broader future of wearable technology.

Alibaba’s stock has demonstrated robust performance this year, gaining 42% year-to-date. This strong momentum has been further strengthened by Goldman Sachs, which significantly increased its stake in Alibaba during the last quarter, acquiring over $1 billion in shares and becoming the largest institutional buyer.

This substantial investment underscores growing investor confidence in Alibaba’s expansive $52.4 billion AI transformation initiatives, as Wall Street keenly awaits the company’s fourth-quarter earnings results.

Looking ahead, industry observers note that the competitive landscape for smart glasses is set to broaden further, with companies like Snapchat’s parent Snap Inc. (NYSE:SNAP) reportedly preparing to launch lightweight AR smart glasses, signaling a sustained battle for market dominance in this nascent but promising technology segment.

Price Action: BABA stock is trading higher by 2.02% to $122.45 premarket at last check Monday.

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