Alibaba’s Stock Skyrockets Following a Significant Increase in AI Investment
Chinese tech giant Alibaba’s shares reached a four-year high following CEO Eddie Wu’s announcement of a substantial increase in AI spending, surpassing the company’s initial $53 billion commitment. This news, disclosed at the annual Apsara Conference of Alibaba Cloud, led to an 8% surge in US-listed shares during premarket trading.
Wu indicated that Alibaba anticipates global AI investment to hit around $4 trillion in the upcoming five years. This projection aligns with the company’s expansion of its February plan to invest 380 billion yuan ($53 billion) in AI models and infrastructure over a three-year period. In addition, the company introduced its latest Qwen3-Max large language model and announced the establishment of its inaugural data centers in Brazil, France, and the Netherlands.
The surge in AI spending is a reflection of the escalating competition among global tech giants. The collective AI investments planned by Amazon, Alphabet, Microsoft, and Meta for their 2025 fiscal years amount to $364 billion. Alibaba’s cloud revenue saw a 26% year-over-year growth in its recent quarter, and the stock has risen over 110% year-to-date. This growth is largely due to investors betting on China’s AI capabilities amidst the ongoing US-China tech tensions.
Source: CNBC
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Key Takeaways:
- Alibaba’s shares reached a four-year high following a significant increase in AI spending.
- The company anticipates global AI investment to hit around $4 trillion in the next five years.
- Alibaba introduced its latest Qwen3-Max large language model and plans to establish data centers in Brazil, France, and the Netherlands.
- Alibaba’s cloud revenue grew by 26% year-over-year in its recent quarter, with the stock up over 110% year-to-date.