Alibaba Group Holding Limited [NYSE: BABA] announced Wednesday it has decided to invest $1.4 billion (10 billion Yuan) in the Artificial Intelligence (AI) and internet of thing (IoT)  system for its smart speaker Tmall Genie. The company declared that the investment money will be used to add more content to the Tmall Genie smart speaker.

Alibaba launched the first model of smart speaker in July 2017 using intelligent personal assistance service AliGenie. Alibaba Group Holding Limited is scheduled to announce its full FY 2020 and March quarter  2020 results on May 22, 2020.

Shares of Alibaba soared 1.38% and up +3.00 points during the pre-market trading session. It has the current price of $220.20 and the previous close was $215.28.  BABA had a trading volume of roughly 21,438,090 as contrasted to the 3-month average volume of 18.79 million. It has a day low and day high range of 215.19-220.59, respectively.

BABA has an operating margin of 19.00%, a profit margin of 35.20%, and a gross margin of 45.70%. Its total Return on Assets (ROA) is 15.40%. BABA’s return on equity (ROE) has reached 29.10%, and the return on investment (ROI) reached 6.50%. BABA has a 52- week low range of 147.95 and a 52-week high range of 231.14. BABA has increased 46.81% from its 52-week low and has declined -6.03% from 52-week high.

Alibaba Holdings turned towards technological advancement and new business areas. The e-commerce giant’s smart speaker has the ability to interact with users via a voice interface. The smart speaker will be able to provide weather information,  play music, and perform many other functions.

BABA has revealed the price of the latest model of the smart speaker will be 549 Yuan ($77.28) with a 10-inch screen. Alibaba has a competitor such as Xiaomi Corporation and Baidu the sector of smart speakers.

One of the research surveys of firm Canalys disclosed that Alibaba has shipped 16.8 million smart speakers to the consumers while the competitor Baidu Inc. has delivered 17.3 million to customers.