BEIJING, Feb 24 — Chinese tech giant Alibaba has announced a bold investment of over US$50 billion (RM220 billion) in artificial intelligence and cloud computing over the next three years, signaling a renewed push for innovation and growth. The announcement comes just a week after co-founder Jack Ma was seen in a rare public meeting with President Xi Jinping.
Tech Stocks Surge Amid Alibaba’s AI Ambitions
Alibaba’s shares have skyrocketed to three-year highs, fueled by a broader rally in Chinese tech stocks. Investor confidence has been on the rise since the Hangzhou-based firm posted robust sales growth last week, reinforcing optimism that the sector is rebounding from a prolonged downturn triggered by regulatory crackdowns.
According to an official statement, Alibaba will invest at least 380 billion yuan (RM233 billion) in advancing its AI and cloud computing infrastructure, surpassing its total spending in these areas over the past decade. The company emphasized that this massive investment underscores its “commitment to long-term technological innovation” and an AI-driven growth strategy.
Strategic Expansion, But Details Remain Unclear
While Alibaba has positioned the investment as a transformative step, the company has yet to disclose specific project allocations or how the funds will be utilized. However, the move signals its determination to maintain a competitive edge in the fast-evolving AI landscape.
The announcement follows the company’s 8% year-on-year revenue increase for the December quarter, reaching 280 billion yuan, well above analyst expectations. The positive results triggered a 14% surge in Alibaba’s Hong Kong-listed shares on Friday. CEO Eddie Wu highlighted that the latest earnings demonstrate “substantial progress” in the firm’s “user-first, AI-driven” strategy, as well as a re-acceleration of core business growth.
A Comeback for Big Tech?
Alibaba and other Chinese tech giants have endured years of investor uncertainty following Beijing’s sweeping regulatory crackdown on the sector in 2020. However, momentum has shifted in recent months, partly driven by the success of Chinese AI startup DeepSeek, whose new chatbot has shaken up the industry.
This turnaround comes as China’s economy grapples with sluggish consumer demand and ongoing real estate troubles. In a rare high-profile meeting with business leaders last week, President Xi hailed the private sector, calling current economic challenges “surmountable”—widely seen as a signal of renewed government support for big tech.
Though Jack Ma is no longer an executive at Alibaba, he remains a highly influential figure. His participation in Xi’s meeting has been interpreted as a potential reconciliation with regulators, possibly marking the billionaire’s return to a more public role after years of low-profile appearances following Ant Group’s halted IPO in 2020.
With AI and cloud computing emerging as China’s next technological frontier, Alibaba’s ambitious investment signals its intent to be at the forefront of this revolution—and, perhaps, the resurgence of China’s tech dominance.
— AFP
