ISLAMABAD: Alibaba, China’s leading e-commerce and tech giant, revealed Monday a groundbreaking investment of 380 billion yuan ($53 billion) in artificial intelligence (AI) and cloud computing infrastructure through 2027. This marks the company’s largest-ever investment in technology.
The announcement follows a significant meeting between Alibaba co-founder Jack Ma and Chinese President Xi Jinping, suggesting a possible thaw in the relationship between China’s tech industry and regulatory bodies.
This new investment will exceed Alibaba’s total spending on AI and cloud computing over the last decade, according to the company. The initiative aims to boost Alibaba’s technological innovation and further its AI-driven growth strategy.
Alibaba’s CEO Eddie Wu also shared the company’s strong performance, reporting an 8% revenue increase to 280 billion yuan for the quarter ending in December, surpassing market expectations. This news led to a 14% rise in Alibaba’s Hong Kong-listed shares last Friday.
The announcement is part of a broader recovery in Chinese tech stocks, which have been rallying since early 2024. This rebound follows a period of intense regulatory scrutiny starting in 2020 that impacted Alibaba and its affiliate Ant Group.
Recent advances in China’s AI industry, such as the launch of DeepSeek’s chatbot, have helped restore investor confidence, even as China continues to face economic challenges, including weak consumer spending and a struggling real estate market.
President Xi’s recent comments to business leaders, declaring current economic difficulties “surmountable,” are seen as a show of support for the private sector, particularly for the technology industry.
While the specific details of the investment allocation remain under wraps, Alibaba’s focus remains on long-term technological innovation and AI infrastructure development. This move places Alibaba at the forefront of China’s AI competition, as global tech giants accelerate their investments in AI and cloud computing.
