Alibaba to Invest Over $52 Billion in AI and Cloud Computing
This represented an 8% year-over-year increase, boosting its Hong Kong-listed shares by 14% on Friday.
Chinese e-commerce giant Alibaba has announced plans to invest at least 380 billion yuan ($52.44 billion) in artificial intelligence (AI) and cloud computing infrastructure over the next three years.
The company revealed this substantial investment in a statement on Monday, following an earlier indication of its AI and cloud focus during its financial results announcement last week.
At the time, Alibaba had not disclosed the exact investment amount.
“Alibaba will invest at least 380 billion yuan over the next three years to advance its cloud computing and AI infrastructure,” the company stated, emphasizing its commitment to long-term technological innovation and AI-driven growth.
The firm recently reported revenue of 280.15 billion yuan for the quarter ending December 31, slightly surpassing analysts’ expectations.
This represented an 8% year-over-year increase, boosting its Hong Kong-listed shares by 14% on Friday.
CEO Eddie Wu highlighted the company’s progress, stating that the quarterly results reflect Alibaba’s “user-first, AI-driven” strategies and the accelerated growth of its core businesses.
Alibaba’s planned investment exceeds its total spending on AI and cloud computing over the past decade, marking a significant push into the sector.
The company has positioned itself as a leading player in China’s AI race, attracting investors with strategic business moves. Its stock has surged over 68% this year.
Other Chinese tech firms are also ramping up investments in AI.
ByteDance, the parent company of TikTok, is reportedly allocating more than 150 billion yuan in capital expenditure this year, with a significant portion dedicated to AI, according to Reuters sources.