Alibaba to invest $52.4B in AI infrastructure over 3 years

ISTANBUL

Chinese tech giant Alibaba announced on Monday its plan to invest over $52.4 billion in artificial intelligence (AI) infrastructure and cloud computing over the next three years, according to Chinese state media.

Alibaba Group CEO Wu Yongming said the investment exceeds the company’s total AI and cloud spending over the past decade, emphasizing its AI-driven growth strategy.

The investment underscores Alibaba’s commitment to integrating AI with cloud infrastructure to drive further expansion.

The announcement follows Alibaba’s report of a 13% year-on-year increase in revenue from cloud-related services last October-December. Notably, revenue from AI-related products has grown at a triple-digit rate for six consecutive quarters.

Alibaba’s move also comes a week after its founder, Jack Ma, attended a meeting of tech leaders and entrepreneurs with Chinese President Xi Jinping.

During the meeting, Xi encouraged business leaders to maximize their potential, according to an official statement.

Highlighting the private sector’s "bright prospects and vast potential," Xi said: “It’s the right time for private enterprises and entrepreneurs to give full play to their potential.”

He also stressed the importance of fostering the private sector’s healthy, high-quality development.