Alibaba plans to invest $52 billion in AI and cloud computing, aiming to dominate China’s rapidly evolving artificial intelligence industry.
Alibaba is making a BIG play in artificial intelligence, announcing plans to pour $52 billion (380 billion yuan) into AI and cloud computing over the course of the next three years. The move, which outpaces its total cloud spending over the last decade, gives weight to the Chinese tech giant’s ambitions to dominate the AI space.
Massive Investment, Bigger Ambitions
The announcement comes on the heels of Alibaba’s latest earnings report, where the company posted an 8% revenue jump, hitting 280.15 billion yuan for the quarter ending December 2024. The company’s focus on AI is already paying off, with triple-digit growth in AI-related product revenue for six straight quarters.
Alibaba CEO Eddie Wu isn’t shy about the company’s AI-driven future.
“We believe artificial general intelligence (AGI) will transform the industry, and AI could become the biggest sector in the world,” Wu stated, emphasizing the need for heavy investment.
Alibaba’s Stock Soars on AI Hype
Investors seem to like Alibaba’s vision. Following the investment announcement, shares in Hong Kong surged 14.6%, hitting a three-year high. Overall, the company’s stock is already up 68% this year, reflecting growing confidence in its AI-focused strategy.
The AI Race in China Heats Up
Alibaba isn’t the only Chinese tech giant making massive AI investments. ByteDance, the parent company of TikTok, is also doubling down on AI, reportedly planning to spend over 150 billion yuan on capital expenditures this year—a significant portion of which is earmarked for AI development.
