Over the next three years, Alibaba Group Holding Ltd. (BABA) has committed to investing over 380 billion yuan ($53 billion) on AI infrastructure, including data centers. This significant investment highlights the e-commerce pioneer’s aspirations to become a leader in artificial intelligence.
The internet business that Jack Ma co-founded intends to double its investments in its network of cloud computing and artificial intelligence compared to the previous ten years. As models advance and require more processing power, Alibaba hopes to become a major partner for businesses creating and using AI in the real world, the firm stated on its official blog.
Alibaba, which was knocked off balance by a government crackdown that started in 2020, is refocusing its goals on e-commerce and artificial intelligence (AI). CEO Eddie Wu announced last week that the company’s main goal is now artificial general intelligence (AGI), joining a race that has so far been led by companies like OpenAI and large US companies like Microsoft Corp. and Alphabet Inc.
In a show of faith in the future of AI, major internet companies like Amazon.com Inc. and Meta Platforms Inc. have also committed billions of dollars to the data centers required to train, build, and host AI services. However, after Chinese startup DeepSeek revealed a model trained for a tenth of the price of several of its competitors, Wall Street has started to wonder if there would be enough demand to utilize all that capacity. While Meta has set aside around $65 billion for 2025, Microsoft anticipates spending $80 billion on AI data centers this fiscal year.
Nevertheless, Alibaba’s increasing will to compete in the artificial intelligence space has been praised by investors. In the context of Alibaba’s conventional online retail operation, Wu’s allusion to artificial general intelligence (AGI)—strong, hypothetical AI systems that may mimic or match human thinking capabilities—is startling.
Alibaba’s market valuation increased by over $100 billion in 2025, although it is still far behind its pre-crackdown high. At a televised conference this week called by Chinese President Xi Jinping, Ma himself joined a select group of the most prominent figures in Chinese business and technology, marking Alibaba’s comeback to prominence after years of neglect. Entrepreneurs from a wide range of industries, including artificial intelligence, were represented at the event.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream formerly known as CIO News LinkedIn Account | The Mainstream formerly known as CIO News Facebook | The Mainstream formerly known as CIO News Youtube | The Mainstream formerly known as CIO News Twitter
About us:
The Mainstream formerly known as CIO News is a premier platform dedicated to delivering latest news, updates, and insights from the tech industry. With its strong foundation of intellectual property and thought leadership, the platform is well-positioned to stay ahead of the curve and lead conversations about how technology shapes our world. From its early days as CIO News to its rebranding as The Mainstream on November 28, 2024, it has been expanding its global reach, targeting key markets in the Middle East & Africa, ASEAN, the USA, and the UK. The Mainstream is a vision to put technology at the center of every conversation, inspiring professionals and organizations to embrace the future of tech.
