Alibaba to Invest $52.4B in AI and Cloud Over Three Years

Alibaba has announced plans to invest at least 380 billion yuan ($52.44 billion) in cloud computing and artificial intelligence (AI) infrastructure over the next three years, Reuters reported.

The Chinese e-commerce giant had previously hinted at its investment plans while reporting earnings last Friday but did not disclose a specific figure at the time. The company posted revenue of 280.15 billion yuan for the quarter ending December 31, slightly surpassing analysts’ estimates.

Alibaba stated that this investment exceeds its total spending on AI and cloud computing over the past decade. The company has entered 2025 as a frontrunner in China’s AI race, attracting investors with strategic business moves. Its stock has surged over 68% this year as of the last close.

Other Chinese tech giants are also ramping up AI investments. ByteDance, the parent company of TikTok, has allocated over 150 billion yuan in capital expenditure for this year, with a significant portion directed toward AI, according to sources cited by Reuters in January.