Alibaba to Spend $53 Billion on AI Infrastructure in Big Pivot

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Alibaba to Spend $53 Billion on AI Infrastructure in Big Pivot

(Bloomberg) — Alibaba Group Holding Ltd. (BABA) has pledged to invest more than 380 billion yuan ($53 billion) on AI infrastructure such as data centers over the next three years, a major commitment that underscores the e-commerce pioneer’s ambitions of becoming a leader in artificial intelligence.

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The internet company co-founded by Jack Ma plans to spend more on its AI and cloud computing network than it has over the past decade. Alibaba envisions becoming a key partner to companies developing and applying AI to the real world as models evolve and need increasing amounts of computing power, the company said on its official blog.

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Alibaba is righting a business knocked off-kilter by a government clampdown that began in 2020, refocusing its ambitions on e-commerce and AI. Last week, Chief Executive Officer Eddie Wu declared that Artificial General Intelligence, or AGI, was now its primary objective, joining a race so far led by the likes of OpenAI and big US firms from

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Corp. to Alphabet Inc.

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.com Inc. have similarly pledged billions toward the data centers needed to train, develop and host AI services — a vote of confidence in the technology’s future. Yet Wall Street has begun to question whether there will be enough demand to use up all that capacity, particularly after ******** upstart DeepSeek unveiled a model trained for a fraction of the cost of many of its rivals.

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expects to spend $80 billion this fiscal year on AI data centers, while Meta has earmarked some $65 billion for 2025.

Still, investors have applauded Alibaba’s growing determination to compete in artificial intelligence. Wu’s reference to AGI — powerful, hypothetical AI systems that could emulate or match human thinking capabilities — is striking in the context of Alibaba’s traditional online retail business.

Alibaba has gained more than $100 billion of market value in 2025, though it’s still far from its pre-crackdown peak. Ma himself joined a select group of the biggest names in ******** technology and business at a televised summit convened this week by ******** President Xi Jinping — signifying Alibaba’s return to favor after years in the cold. The gathering featured entrepreneurs across a broad swath of industry, notably from the sphere of artificial intelligence.

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