Did you know Chinese Tech Giant Alibaba Will Spend More Than $50B on AI and Cloud Computing Over Next Three Years

 

China’s leading tech firm Alibaba just shared that it will be spending more than $50B (or RMB380 billion to be exact) on AI and cloud computing. This will occur steadily over the next couple of threes, the company shared.

It’s interesting how the news comes just a week after we saw co-founder Jack Ma meet China’s President Xi Jinping. This is where investors have piled into Chinese tech shares since the year’s start.

Moreover, Alibaba which runs the nation’s biggest online shopping app has seen stocks reach a three-year high. However, the company did see its e-commerce ventures nosedive in places like New York after the mega-investment drive raised concerns that this kind of spending would impact profits.

The main takeaway there has to do with Alibaba’s ambitious spending goals for the year. This is leading to serious anxiety that the firm’s management might take a major hit in 2025. Shares of the firm were down more than 9%. The company says it hopes to invest $53B over the next few years to better cloud computing and AI.

The strategy was designed to reinforce its commitment to a long-term tech solution and underscore the organization’s focus linked to AI growth. The statement failed to detail how the company allocates funds and what particular projects would get the support from their end.

However, it did share that investments would go above the total AI budget and cloud spending that it’s seen in the last ten years. Remember, the company did share a rise in revenue of 8% where it beat out its own predictions. This sent shares in places like Hong Kong to a new 14% high.

Meanwhile, the CEO shared the firm’s quarterly results that showed steady progress in the AI-driven strategies and growth of core business models. For years, it’s been seeing some downfall in terms of investor confidence after China shared a more aggressive crackdown against the world of tech in 2020.

The turnaround arrives at a time when we see the world’s second-biggest economy continue to battle sluggish and constant issues in the property sector. During a rare meeting with business giants in the past week, China’s president hailed the private sector and said that the country would back big tech support.