On Monday Alibaba announced its plans to invest at least 380 billion yuan ($52.44 billion) in its cloud computing and artificial intelligence infrastructure over the next three years.
The Chinese e-commerce giant had previously mentioned its intention to invest in these sectors while reporting its earnings on Friday but had not disclosed a specific amount at the time. For the quarter ending December 31, Alibaba posted revenue of 280.15 billion yuan, slightly surpassing analysts’ expectations. It also said that the total investment exceeds the company’s spending on AI and cloud computing over the past decade.
Alibaba has started 2025 strong in China’s AI race, attracting investors with strategic business deals. As of its last closing, its stock has surged over 68% this year. Additionally, billionaire investor Ryan Cohen has significantly increased his stake in Alibaba, growing it to approximately $1 billion in recent months, the Wall Street Journal reported on Thursday, citing sources familiar with the matter.
Other Chinese firms have also been investing in the sector. ByteDance, the parent company of TikTok, has reportedly allocated more than 150 billion yuan for capital expenditures this year, with a significant portion focused on AI, according to Reuters sources in late January.
