Alibaba bets on artificial intelligence: A billion-dollar project gains momentum

Alibaba Group catapulted its shares to a four-year high after the company announced significant increases in its investments in AI infrastructure to better compete with American counterparts. Chief Executive Officer Eddie Wu stated at a developer conference in Hangzhou that global investments in artificial intelligence are rapidly increasing. To keep pace, Alibaba will expand its plans, announced in February, to invest over 380 billion yuan (53 billion US dollars) over three years in the development of AI models and infrastructure. Wu emphasized that the pace of industry development far exceeded his expectations, as did the demand for AI infrastructure. The announcement of an additional investment led to a rise in shares in Hong Kong by up to 7.2%. Additionally, Alibaba introduced its new large language model Qwen3-Max and other improvements to its AI offerings. Wu stated that Alibaba aims to position itself as a "full-stack AI service provider," which includes selling models and platforms adaptable to various needs. The focus on artificial intelligence is already paying off: the Hangzhou-based company reported triple-digit growth in its AI products last quarter. The Cloud Intelligence Division also recorded a better-than-expected revenue jump of 26%, making it the fastest-growing division of the group. These positive developments and measures were celebrated by investors, who more than doubled the company's stock price.