Alibaba, China’s e-commerce giant, unveiled plans on Monday for a record-breaking 380 billion yuan ($53 billion) investment in artificial intelligence (AI) and cloud computing infrastructure through 2027. This marks the company’s largest technology investment to date and underscores its commitment to advancing its AI-driven growth strategy.
The announcement follows a high-profile meeting between Alibaba co-founder Jack Ma and Chinese President Xi Jinping, signaling improved relations between China’s tech sector and regulatory authorities after years of regulatory scrutiny. Alibaba’s latest move is aimed at boosting its technological innovation capabilities and staying ahead in the global AI race.
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CEO Eddie Wu shared that Alibaba’s revenue increased by 8% to 280 billion yuan in the quarter ending December, surpassing market expectations. This announcement led to a 14% surge in Alibaba’s Hong Kong-listed shares last week. The company’s AI and cloud investment will surpass its total spending in these areas over the past decade, a clear indication of its ambition to remain at the forefront of China’s AI revolution.
The news arrives amid a broader resurgence of Chinese tech stocks, recovering from the regulatory challenges that began in 2020. Alongside Alibaba, other tech firms have seen renewed investor confidence, bolstered by developments in AI, such as the launch of DeepSeek’s chatbot.
President Xi’s recent meeting with business leaders, in which he expressed optimism about overcoming China’s economic challenges, is seen as a positive signal for the private sector, particularly the tech industry. Alibaba’s significant investment comes at a critical time, positioning the company to lead in China’s growing AI and cloud infrastructure sectors, as global tech firms continue to ramp up their AI capabilities.
