Alibaba Group has planned to enter into the global AI race by investing more than 380 billion yuan ($53 billion) in artificial intelligence and cloud computing.
According to SCMP, a company co-founded by Jack Ma on Monday, February 24, 2025, announced that it will invest around 380 billion yuan in its AI and cloud computing infrastructure in the next three years.
The world's leading wholesale online marketplace said that the plans underscore its “focus on AI-driven growth and its role as a leading global cloud provider.”
The announcement came after the Chinese online shopping company vowed to invest in the artificial intelligence on Friday, February 21, 2025, without revealing the amount of the investment.
Moreover, Everbright Securities International strategist Kenny Ng finds the size of investment surprising for the market, as he believes that it would “require good growth outside the core e-commerce business.”
He explained, “It is expected that after Alibaba’s announcement, other companies will also plan their capital investment. After all, in the initial stage of artificial intelligence development, there are first-mover advantages.”
Notably, in recent years, numerous Chinese companies have made heavy investments in AI, including TikTok parent company ByteDance, which plans to invest over 150 billion yuan in capital expenditure for this year with a big focus on AI.
