Alibaba Enters Global AI Race with $53 Billion Investment Commitment Over 3 Years.

Chinese e-commerce giant Alibaba Group Holding Ltd announced on Monday a major investment of over 380 billion yuan ($53 billion) into artificial intelligence (AI) infrastructure over the next three years. This move aims to establish the company as a leading player in the AI sector, as it faces increasing competition from global tech firms.

The investment, which surpasses Alibaba’s total spending on AI and cloud computing over the past decade, will focus on expanding data centers and improving computing power to support the next generation of AI applications. In a blog post, the company expressed its goal to become a key partner for businesses adopting AI solutions, responding to the growing demand for computing capabilities.

During Alibaba’s latest earnings call, CEO Eddie Wu stated that Artificial General Intelligence (AGI) would be the company’s top priority, positioning Alibaba alongside global tech giants like OpenAI, Microsoft, and Alphabet in the race to develop AI systems that could potentially replicate human intelligence.

Alibaba’s commitment is part of a wider industry trend, with major tech firms pouring billions into AI development. Microsoft is set to spend $80 billion on AI data centers this fiscal year, while Meta has committed around $65 billion for 2025. However, there are concerns about whether demand will match these investments, especially with the rise of cost-effective AI models from newcomers like DeepSeek.

Despite these concerns, Alibaba’s increasing focus on AI has been met positively by investors, with the company’s market value surging by more than $100 billion in 2025.
Though still below its peak valuation before regulatory crackdowns, Alibaba’s participation in a high-profile summit this week, led by Chinese President Xi Jinping and attended by top tech entrepreneurs, signals its restored standing in the industry.

The company’s latest earnings report also boosted investor confidence, revealing its fastest revenue growth since late 2023, largely driven by AI and cloud computing. Alibaba’s stock rose by over 8% after the announcement, bringing its year-to-date gains to nearly 60%.

Among those taking a keen interest in Alibaba’s growth is Ryan Cohen, a prominent investor known for his strategic stock market moves. According to a recent Wall Street Journal report, Cohen has increased his stake in Alibaba to approximately $1 billion, or around seven million shares. His previous investments in companies like Apple, Netflix, and Wells Fargo have often generated significant interest from retail investors.

Source : Business Standard