Chinese tech giant Alibaba has announced a massive investment of Ksh.6.4 trillion ($50 billion) in artificial intelligence (AI) and cloud computing over the next three years. The move signals a renewed push by the company to dominate the AI-driven technology space as China’s tech sector recovers from regulatory crackdowns in recent years.
The announcement comes just a week after Alibaba co-founder Jack Ma was seen meeting Chinese President Xi Jinping, an event that has sparked speculation about the billionaire’s re-emergence in the public eye. Ma, who has largely remained out of the spotlight since Beijing’s clampdown on Alibaba and its fintech affiliate Ant Group in 2020, remains a key figure in China’s private sector.
Alibaba’s investment plan is one of the most significant commitments to AI and cloud computing by a Chinese firm, surpassing the company’s total spending in these sectors over the past decade. The Hangzhou-based company stated that the strategy aims to reinforce its commitment to long-term technological innovation and AI-driven growth. However, it did not provide specific details on the allocation of the funds or the projects it intends to support.
The announcement comes at a time when Chinese technology stocks are experiencing a resurgence. Alibaba’s stock has soared to a three-year high, with shares in Hong Kong surging by 14% last week after the company reported an 8% increase in revenue for the last quarter of 2023. Alibaba’s revenue for the three-month period ending in December reached 280 billion yuan ($39 billion), surpassing analysts’ expectations.
CEO Eddie Wu credited the company’s AI-driven strategy and a renewed focus on user engagement for the strong financial performance. “These results demonstrate substantial progress in our ‘user-first, AI-driven’ strategies and the re-accelerated growth of our core businesses,” Wu stated.
China’s tech sector has faced significant regulatory hurdles since 2020, when authorities tightened restrictions on major firms. However, recent signals from the Chinese government, including Xi Jinping’s meeting with business leaders, suggest a shift towards more business-friendly policies.
Alibaba’s move aligns with a broader trend in China, where companies are doubling down on AI advancements following the success of DeepSeek, a Chinese startup that has disrupted the AI industry with its chatbot technology. As the world’s second-largest economy struggles with sluggish consumption and a weak property market, Alibaba’s bold investment could mark a turning point for China’s tech resurgence.
