Firm says its strategy is aimed at “reinforcing Alibaba’s commitment to long-term technological innovation”
Chinese tech giant Alibaba stated Monday it’ll spend more than $50 billion on artificial intelligence and cloud computing over the following 3 years, a week after co-founder Jack Ma
was seen meeting President Xi Jinping.
Since the beginning of the year, investors have poured money into Chinese technology stocks. Alibaba’s shares, which run some of the largest online shopping platforms in the country, have risen to three-year highs. The company claims that “reinforcing Alibaba’s commitment to long-term technological innovation” is the goal of its strategy. By
A woman poses for a selfie next to signage for e-commerce giant Alibaba in the Xuhui district in Shanghai, China, on February 22, 2025. — AFP
On February 22, 2025, a woman takes a selfie next to Alibaba’s advertising in the Xuhui district of Shanghai, China. Chinese tech giant Alibaba said Monday it will spend more than $50 billion on artificial intelligence and cloud computing over the next three years, a week after co-founder Jack Ma was seen meeting President Xi Jinping.
Since the beginning of the year, investors have poured money into Chinese technology stocks. Alibaba’s shares, which run some of the largest online shopping platforms in the country, have risen to three-year highs. The gains have increased since the Hangzhou-based company announced strong sales growth last week, adding to indications that the industry is recovering from years of doom brought on by a government crackdown.
According to a company statement, Alibaba has intended to invest at least 380 billion yuan ($53 billion) in the next three years to carry forward its cloud computing and AI infrastructure. “The firm stated that its strategy was purified” for long-term technological innovation (of Alibaba’s) commitment … (and) underlines the company’s attention on AI-operated development.”
The company would not specify which specific projects would be supported or how the funds would be distributed in the statement. It did add that the investment would surpass all of its spending over the previous ten years on AI and cloud. Alibaba’s Hong Kong shares surged 14% on Friday after the company announced an 8% increase in revenue for the three months through December, exceeding estimates of 280 billion yuan. CEO Eddie Wu stated the company’s quarterly results last week:
“Alibaba users first, AI-powered ‘strategies’ strategies and adequate progress in the re-reverberated development of our main businesses.” After Beijing launched an aggressive regulatory crackdown on the tech sector in 2020, investor confidence in the company and its peers in the industry declined for years.
However, the introduction of a chatbot by Chinese startup DeepSeek, which has shaken up the AI industry, has helped them rise in recent months. The turnaround comes at a time when the world’s second-largest economy is still struggling with low consumer spending and persistent problems in the real estate industry. In a rare meeting with business luminaries last week, Xi appreciated the private sector and said the current economic problems were “Sarmountable” – a step was widely explained as a display of support for Big Tech.
The MA now remains an influential person and is in the headlines despite Alibaba not being an executive, as the authorities brought down the IPO of the concerned ant group in 2020.
Following the conflict with regulators, the billionaire magnate’s inclusion in the meeting suggested that he might undergo public rehabilitation.