Alibaba CEO Announces Major AI Investment Boosting Shares in US and Hong Kong

Alibaba's shares surge over 9% in U.S. premarket trading and more than 6% in Hong Kong after CEO Eddie Wu unveils plans to significantly increase the company's investment in artificial intelligence (AI) and introduces new AI products.

Investment and Product Launches Drive Share Prices

At Alibaba Cloud's annual technology conference, Wu announces a substantial boost in AI spending, on top of the previously committed 380 billion yuan ($53 billion) over three years. The company is advancing its AI infrastructure initiative, aiming to sustain and further increase investment in anticipation of the artificial superintelligence era.

Alibaba also unveils the latest version of its Qwen large language model, the Qwen3-Max, along with other updates to its AI product offerings. This move positions Alibaba Cloud as a full-stack AI service provider, delivering the necessary computing power for training and deploying large AI models through its own data centers.

Global Expansion and Strategic Partnerships

Wu highlights that the cumulative global investment in AI over the next five years will exceed $4 trillion, marking the largest investment in computing power and R&D in history. To support this, Alibaba Cloud will launch new data centers in Brazil, France, and the Netherlands, with additional centers planned for Mexico, Japan, South Korea, Malaysia, and Dubai next year.

The company recently secured a deal with Unicom, a major Chinese e-commerce firm, which will deploy Alibaba's AI accelerators from its semiconductor unit. This partnership underscores the growing focus on chip self-sufficiency among Chinese tech firms amid rising tensions between the U.S. and China.

Industry Context and Future Outlook

The significant investment and expansion plans come at a time when the global AI market is rapidly evolving. Alibaba's strategic moves are expected to strengthen its position in the competitive AI landscape and drive further innovation in the sector.

As the company continues to invest in AI, it aims to stay at the forefront of technological advancements and maintain its leadership in the industry. The new data centers and AI products are set to enhance Alibaba's capabilities and expand its reach globally.

References

• Alibaba shares jump 9% in U.S. premarket after CEO unveils plans to boost AI spending