Alibaba Group announced a bold $53 billion investment in AI infrastructure over the next three years. This strategic move reinforces its ambition to lead in the AI space amid rising global competition.
The company plans to channel these funds into expanding data centers and boosting computing power to support the next generation of AI applications. This investment surpasses its total AI and cloud computing spending over the past decade, highlighting its commitment to innovation.
In a blog post, Alibaba emphasized its goal of becoming a key partner for businesses adopting AI-driven solutions. During the latest earnings call, CEO Eddie Wu identified Artificial General Intelligence (AGI) as the company’s top priority, aligning Alibaba with global leaders like OpenAI, Microsoft, and Alphabet in the race to develop human-like AI systems.
Alibaba joins global AI race
Alibaba’s AI push reflects a broader industry trend, with tech giants pouring billions into AI development. Microsoft plans to spend $80 billion on AI data centers this fiscal year, while Meta has set aside $65 billion for 2025. However, some experts question whether demand will justify these massive investments, especially with cost-effective AI models from rising players like DeepSeek.
Despite these concerns, investors have responded positively to Alibaba’s AI focus. The company’s market value has climbed by over $100 billion in 2025. While still below its peak before regulatory pressures, Alibaba’s presence at a high-profile summit led by President Xi Jinping signals its renewed influence in the industry.
Investor confidence grew further after Alibaba’s latest earnings report showed its fastest revenue growth since late 2023, driven by AI and cloud computing. The company’s stock surged over 8% after the announcement and has gained nearly 60% year-to-date.
Alibaba Reports Fourth Quarter 2024 Results
Alibaba released its fourth quarter 2024 results. Revenue hit RMB ¥280.2bn (€36.96bn), up 8% year over year. Net income for ordinary shareholders reached RMB ¥48.9bn (€6.45bn).
Eddie Wu shared a statement on the company’s website. He said, “This quarter’s results showed strong progress in our ‘user first, AI-driven’ strategies. We also saw renewed growth in our core businesses. Taobao and Tmall Group’s customer management revenue rose 9% this quarter. This growth came from better user experience and strong monetization efforts.”
Ryan Cohen increases Alibaba stake to $1 billion
Ryan Cohen, a well-known investor and entrepreneur, is closely watching Alibaba’s growth. According to The Wall Street Journal, he has raised his personal stake in the company to about $1 billion, holding nearly seven million shares.
Cohen’s investment track record includes stakes in Apple, Netflix, and Wells Fargo, often sparking strong retail investor interest. His increased position in Alibaba signals confidence in the company’s future and could attract further market attention.
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