Alibaba Reveals $52.44 Billion AI Investment

On Monday, Alibaba revealed its plans to invest at least 380 billion yuan ($52.44 billion) in cloud computing and artificial intelligence infrastructure over the next three years.

What’s our Chairman, Joe Tsai’s take on the future of AI? AI is more than just a race; it’s about harnessing open-source advancements and driving economic growth. By pushing boundaries and creating new opportunities, we’re fostering innovation across diverse industries.… pic.twitter.com/1BNdQpKdTD

— Alibaba Group (@AlibabaGroup) February 17, 2025

This announcement follows the company’s earnings report on Friday, where it hinted at such investments without specifying an amount.

For the three months ending December 31, Alibaba reported revenue of 280.15 billion yuan, slightly surpassing analysts’ expectations.

Alibaba stated that this investment will exceed its total spending on AI and cloud computing over the past decade.

The company has emerged as a frontrunner in China’s AI race, attracting investors with strategic business deals, leading to a more than 68% rise in its stock this year.

Other Chinese companies, such as ByteDance, the owner of TikTok, are also heavily investing in the sector.

ByteDance has allocated over 150 billion yuan for capital expenditure this year, focusing significantly on AI.

Reuters