Alibaba to Invest More Than USD 52 Billion in AI Over Next Three Years

Alibaba plans to invest at least 380 billion yuan (USD 52.44 billion) in cloud computing and artificial intelligence infrastructure over the next three years.

Credit: AP

The Chinese e-commerce giant announced the investment on Monday, following its earnings report on Friday, where it had mentioned plans to expand in the sector without specifying an amount.

Alibaba reported revenue of 280.15 billion yuan for the quarter ending Dec. 31, slightly surpassing analysts' estimates. The company stated that the planned investment exceeds its total spending on AI and cloud computing over the past decade.

Alibaba has gained momentum in China's AI race, attracting investors through strategic business deals. Its stock has surged more than 68% this year as of its last close.

Other Chinese firms are also increasing investments in AI. ByteDance, the owner of TikTok, has allocated over 150 billion yuan in capital expenditure for this year, with a significant portion focused on AI, according to sources cited by Reuters in January.

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• Alibaba will invest at least 380 billion yuan in AI and cloud computing over three years

• The investment surpasses the company's total AI and cloud spending over the past decade

• Alibaba's stock has risen more than 68% this year

Source: REUTERS