Alibaba Group announced on Monday its plan to allocate over 380 billion yuan (approximately $53 billion) to the development of cloud and AI hardware infrastructure over the next three years, aiming to leverage the swift expansion of the AI sector.
This investment exceeds the total expenditure on cloud and AI by Alibaba in the previous decade and marks the most substantial investment by a private Chinese firm in the construction of cloud and AI hardware infrastructure.
The disclosure aligns with the ongoing surge in China’s AI industry and follows a recent symposium involving prominent Chinese leaders on private enterprises held on February 17.
Eddie Wu, the CEO of Alibaba Group, noted the unexpected rapid rise of AI and the significant potential within the domestic science and technology sector.
He stated, “Alibaba will spare no effort to accelerate the construction of cloud and AI hardware infrastructure to promote the development of the entire industry.”
This significant investment is anticipated to bolster the confidence of associated industries and underscore Alibaba’s steadfast dedication to future investments, according to the company.
On Thursday, Alibaba Group reported its quickest quarterly revenue increase in over a year, supported by its expanding cloud computing services and AI ventures.
For the quarter ending December 31, 2024, Alibaba’s revenue rose by 8% to 280.15 billion yuan, compared to the same quarter last year, surpassing market forecasts.
In particular, the revenue from its cloud computing segment recorded the highest rise in over two years, increasing by 13% year-on-year to 31.74 billion yuan.
The surge in Alibaba Cloud’s performance is largely driven by robust growth in public cloud revenue and AI-related products, which have seen triple-digit year-on-year increases for six consecutive quarters, as reported by Alibaba Cloud.
Alibaba Cloud, the leading cloud computing provider in Asia, has introduced four generations of its Qwen foundation model, a high-performance open-source foundational model.
During an earnings call with investors and analysts, Wu highlighted, “We will continue to focus on three business categories—domestic and international e-commerce, AI+cloud computing, and internet platform businesses.”
“We are confident that our focused strategy will drive sustained solid growth for Alibaba Group,” he added.
He further mentioned the clear and extensive demand for related infrastructure in the AI era.
