
E-commerce giant Alibaba Group Holding Limited (BABA) has expanded beyond online retail to become a major player in artificial intelligence (AI), data infrastructure, and digital innovation. Essentially, the company is spending big to be a frontrunner in the AI race. In that effort, it launched a new AI model for developing video games.
The “Happy Oyster” is a “world model” that can generate real-world 3D simulation videos. This also puts Alibaba in direct competition with gaming giant Tencent Holdings Limited (TCEHY). Alibaba explained that, unlike conventional AI video tools that require a prompt, then render, and finally generate a clip, Happy Oyster continuously listens and responds, with the scene adapting in real time and evolving as it goes.