The potential of AR technology surpasses that of VR, and despite a recent slowdown, its future growth remains promising. With Apple and Google pushing forward with their augmented reality initiatives, and now Alibaba entering the AR space, the industry is poised for a revival. At the Ali Yunqi Conference, Alibaba’s AI Lab officially launched an AR open platform, offering developers a range of tools and support. As major companies race to launch their own AR platforms, it seems AR is finally gaining momentum.
Following Apple and Google, Alibaba has taken a significant step into the augmented reality field, reigniting the AR wave. This move signals a growing interest in AR across the tech industry. With the market reaching 100 million users, Alibaba is now joining the competition, further fueling the trend.
Alibaba's AR platform showcases strong capabilities in cloud recognition, one-stop solutions, and SDK technologies—highlighting its deep expertise in cloud computing. The platform has been in development for three years and has served over 200 million users. It also partners with institutions like the National Library, offering advanced technologies in digital content, education, and media.
At Starbucks’ Shanghai Baking Workshop, customers can use the “Scan†function on their phones to explore the coffee-making process through AR. This immersive experience allows them to engage with every detail of the 20,000-square-meter facility.
Starbucks aims to reconnect younger generations with coffee culture through this innovative interactive format. The AR solution was developed in collaboration with Alibaba AI Labs, marking a breakthrough in large-scale AR applications. According to Ali Xue, head of Alibaba AI Labs, this is one of the most advanced AR implementations globally.
New forms of consumer interaction driven by emerging technologies are proving effective in capturing the attention of younger audiences. Starbucks is no longer just selling coffee—it’s rebranding its culture through AR, using Alibaba’s technology to attract young consumers.
As a new hardware-software interaction platform, AR introduces more ways for users to engage with content. It enhances information acquisition methods, opening up diverse business models and creating vast opportunities for innovation.
Over the past two years, Alibaba has invested significantly in AR, including a nearly $800 million investment in Magic Leap. However, despite the substantial funding, Magic Leap has yet to deliver a product, and Alibaba has not seen returns so far.
The widespread adoption of AR technology is still in its early stages. Once it becomes a necessary tool in the workplace, it will be hard to ignore. People may eventually need mobile devices equipped with AR capabilities, making it a daily necessity.
Alibaba’s core businesses—e-commerce and cloud computing—benefit from its investments in VR/AR and AI. While AI is currently the focus due to its rapid development, AR and VR continue to hold long-term potential. Alibaba’s strategic positioning in AR leverages its existing traffic and infrastructure in e-commerce and cloud services, giving it an edge over competitors like Apple, Google, and Facebook.
While Alibaba has a strong foundation in AR, the path ahead is not without challenges. However, with its industry experience and ecosystem, it is well-positioned to shape the future of augmented reality.
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