Alibaba Group Holding Ltd. plans to invest over 380 billion yuan ($53 billion) in AI infrastructure, including data centers, over the next three years.
This major commitment highlights the company’s ambition to become a leader in artificial intelligence.
Alibaba, plans to invest more in AI and cloud computing than it has over the past decade.
The company aims to be a key partner for businesses advancing AI, as growing models demand more computing power, it shared on its official blog.
The company is reshaping its business after a regulatory crackdown that began in 2020, shifting its focus to e-commerce and AI.
Last week, CEO Eddie Wu announced that Artificial General Intelligence is now the company’s top priority, entering a race dominated by OpenAI and major U.S. firms like Microsoft and Alphabet.
Major tech firms, including Meta and Amazon, have also committed billions to data centers for AI development, signaling confidence in the technology’s future.
However, Wall Street is questioning whether demand will justify the massive investment, especially after Chinese startup DeepSeek introduced a model trained at a fraction of the cost.
Alibaba’s Hong Kong shares reflected these concerns, dropping as much as 2.5% on Monday.
Despite concerns, investors welcomed Alibaba’s stronger push into AI.
Wu’s mention of AGI—advanced AI systems capable of human-like thinking—stands out, given Alibaba’s roots in online retail.
