Alibaba Boosts AI Investment Target to $500 Billion, Drives 26% Revenue Growth

Alibaba has announced a significant increase in its investment target for AI infrastructure, aiming to surpass the previously set goal of 500 billion dollars. This strategic move aligns with the global trend of increasing AI expenditure, as the company seeks to become a leading provider of AI services. The company is currently actively advancing a 380 billion yuan AI infrastructure construction plan, with intentions to further increase investments. By 2032, the energy consumption scale of Alibaba Cloud's global data centers is expected to be 10 times higher than in 2022, indicating an exponential growth in computing power investment to prepare for the era of super artificial intelligence (ASI).

The company's strategic focus on AI is evident in its recent initiatives, including the development of a next-generation "operating system" and "computer." Alibaba has unveiled a series of new measures, such as advancing the 380 billion yuan AI infrastructure construction, expanding global infrastructure, and introducing seven new large model technology products. These efforts are part of a broader strategy to position Alibaba as a leader in the AI landscape, leveraging its strengths in both large models and cloud computing.

The company's commitment to AI is further underscored by its collaboration with NVIDIA in the field of Physical AI. This partnership aims to integrate NVIDIA's Physical AI software stack into Alibaba Cloud's PAI platform, providing enterprise users with comprehensive services across the entire value chain, from data preprocessing to model training and evaluation. This collaboration is expected to accelerate the development of applications such as embodied intelligence and advanced driver assistance systems.

Alibaba's AI strategy is not only about technological advancements but also about creating a robust ecosystem. The company aims to develop a full-stack AI system that integrates hardware and software innovations, positioning itself as a comprehensive AI service provider. This approach is designed to create a competitive advantage in the AI market, where competition is intense among tech giants.

The company's efforts have already begun to yield results, with the AI investment showing positive returns. The second quarter of the 2025 fiscal year saw a 26% year-on-year increase in revenue for the Alibaba Cloud Intelligence Group, the highest growth rate in nearly three years. The company's overall net profit also increased by 76% year-on-year, indicating that the AI investments are starting to pay off.

The market has responded positively to these developments, with Alibaba's Hong Kong-listed shares rising by more than 9% by 4 PM on September 24, adding nearly 300 billion Hong Kong dollars to its market value. This market response reflects the recognition of Alibaba's AI strategy by investors. However, the AI market remains highly competitive, with other tech giants also increasing their investments in AI.

The company's chief technology officer has emphasized the importance of comprehensive capabilities and full-stack self-research in establishing a competitive edge in the AI field. By open-sourcing new large model technologies and encouraging developers to integrate these technologies into their applications, Alibaba aims to drive the development of the entire AI industry.

In summary, Alibaba's increased investment in AI infrastructure and its strategic initiatives in the AI field demonstrate the company's commitment to becoming a leader in the AI era. The company's focus on technological innovation, ecosystem development, and market expansion positions it well to capitalize on the growing opportunities in the AI market.