Alibaba to Spend $53 Billion on AI Infrastructure in Big Pivot
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 24 2025
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Source: Bloomberg
Alibaba's Investment in AI: Alibaba has committed to investing over 380 billion yuan ($53 billion) in AI infrastructure, focusing on data centers and cloud computing, aiming to become a leader in artificial intelligence and compete with major firms like OpenAI.
Shift in Business Focus: Following a government crackdown, Alibaba is refocusing its strategy on e-commerce and AI, with CEO Wu emphasizing the goal of achieving Artificial General Intelligence (AGI), which has garnered positive investor response despite concerns about market demand for AI services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
