Alibaba joins global AI race, commits to $53 billion investment over 3 yrs

Chinese e-commerce giant Alibaba Group will focus on expanding data centres and computing capabilities to support the next generation of AI applications

Don't want to miss the best from Business Standard?

Chinese e-commerce giant Alibaba Group Holding Ltd on Monday announced an investment exceeding 380 billion yuan ($53 billion) into artificial intelligence (AI) infrastructure over the next three years. The move signals the company’s aim to cement itself as a leading player in the AI sector amid growing competition from global technology firms.

 

Alibaba’s investment, exceeding its total AI and cloud computing spending over the past decade, will be directed toward expanding data centers and enhancing computing capabilities to power the next wave of AI applications. In a blog post, the company outlined its ambition to become a key partner for businesses integrating AI into real-world use cases amid rising demand for computing power.

 

During the company’s latest earnings call, Chief Executive Eddie Wu declared Artificial General Intelligence (AGI) as the company’s primary objective, aligning Alibaba with global firms such as OpenAI, Microsoft, and Alphabet in the race to develop AI systems that could one day match human intelligence.

 

Alibaba joins global AI race

Alibaba’s commitment aligns with a broader industry trend, as major technology companies invest billions in AI development and infrastructure. Microsoft is projected to spend $80 billion on AI data centres this fiscal year, while Meta has allocated around $65 billion for 2025. However, concerns are emerging over whether demand will justify these investments, particularly in the wake of cost-effective AI models developed by new entrants like DeepSeek.

 

Despite these uncertainties, Alibaba’s growing emphasis on AI has been well-received by investors. The company’s market value has surged by over $100 billion in 2025.

 

Although still below its peak valuation prior to the regulatory clampdown, Alibaba’s presence at a high-profile summit led by Chinese President Xi Jinping this week, attended by leading technology entrepreneurs, is being interpreted as a sign of its restored standing in the industry.

 

Alibaba’s latest earnings report further fuelled investor enthusiasm, as it posted its fastest revenue growth since late 2023, largely driven by its AI and cloud computing segments. The company’s stock jumped over 8 per cent following the announcement and has gained nearly 60 per cent year-to-date.

 

Ryan Cohen ups stake in Alibaba to $1 billion

Among those closely monitoring Alibaba’s evolution is Ryan Cohen, a prominent investor and entrepreneur, known for his high-profile stock market moves. According to a recent report by The Wall Street Journal, Cohen has increased his personal stake in Alibaba to approximately $1 billion, equivalent to around seven million shares. His investment history, which includes stakes in Apple, Netflix, and Wells Fargo, has often triggered a wave of retail investor interest in targeted companies.