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Alibaba to Invest Over $52 Billion in AI in the Next Three Years

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Staff Reporter

Alibaba announced on Monday its plan to invest at least 380 billion yuan (approximately $52.44 billion) in artificial intelligence (AI) and cloud computing infrastructure over the next three years.

Earlier, during its earnings report on Friday, Alibaba hinted at future investments in this sector but did not disclose specific figures.

For the quarter ending December 31, the e-commerce powerhouse reported revenue of 280.15 billion yuan, slightly surpassing analysts’ expectations.

Alibaba (NYSE:BABA) said the total investment amount exceeds the company’s spending in AI and cloud computing over the past decade.

Alibaba Cloud, the company’s fastest-growing segment, experienced an 11% year-over-year revenue increase last quarter. Notably, AI-related product revenue has achieved triple-digit growth for the sixth consecutive quarter.

As 2025 begins, Alibaba is emerging as a frontrunner in China’s AI race, attracting investors with strategic business deals that bolster its market position.

The competitive landscape is heating up, with other Chinese companies also ramping up their investments in AI. For instance, ByteDance, the parent company of TikTok, has set aside over 150 billion yuan in capital expenditure for this year, with a focus on AI initiatives, according to sources familiar with the situation.

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