Alibaba to invest $53 billion in AI as competition heats up

Chinese e-commerce giant Alibaba has announced plans to invest over 380 billion yuan ($53 billion) in artificial intelligence (AI) infrastructure over the next three years. This move aims to strengthen its position in the AI sector as competition with global tech firms intensifies.

Alibaba's investment, which surpasses its total spending on AI and cloud computing over the past decade, will focus on expanding data centres and boosting computing power to support the next generation of AI applications. In a blog post, the company stated its ambition to be a key partner for businesses integrating AI into real-world solutions as demand for computing power grows.

During the company’s latest earnings call, Chief Executive Eddie Wu identified Artificial General Intelligence (AGI) as Alibaba’s primary goal, putting it in direct competition with global players like OpenAI, Microsoft, and Alphabet, all racing to develop AI systems that could one day match human intelligence.

Alibaba Joins the Global AI Race Alibaba’s major investment follows a broader trend, with leading tech firms pouring billions into AI development. Microsoft is expected to spend $80 billion on AI data centres this year, while Meta has allocated around $65 billion for 2025. However, some experts question whether demand will justify such enormous investments, especially as newer firms like DeepSeek develop cost-effective AI models.

Despite these concerns, Alibaba’s increased focus on AI has been well received by investors, with the company’s market value rising by over $100 billion in 2025.

Although still below its peak valuation before the Chinese government’s regulatory crackdown, Alibaba’s presence at a high-profile summit led by President Xi Jinping, attended by top tech leaders, suggests it is regaining its influence in the industry.

Alibaba’s latest earnings report has also boosted investor confidence, showing its fastest revenue growth since late 2023, mainly driven by its AI and cloud computing divisions. Following the announcement, its stock surged over 8 per cent and has climbed nearly 60 per cent this year.

Ryan Cohen Increases Alibaba Stake to $1 Billion Investor and entrepreneur Ryan Cohen, known for his high-profile stock market moves, has reportedly increased his stake in Alibaba to around $1 billion, equal to approximately seven million shares. According to The Wall Street Journal, Cohen’s investments in companies like Apple, Netflix, and Wells Fargo have often sparked interest among retail investors, potentially influencing Alibaba’s market performance.