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Alibaba Group has introduced a large funding of 380 billion yuan ($52.44 billion) into generative AI and cloud computing infrastructure over the subsequent three years. This sum surpasses Alibaba’s complete cloud and AI price range from the final decade.
The transfer positions Alibaba as a significant contender within the world AI race, instantly competing with U.S. tech giants like Amazon, Microsoft, and Google.
Alibaba’s increasing AI and cloud ecosystem
Alibaba is already deeply embedded within the AI and cloud computing area. The firm gives a set of AI-driven merchandise, together with its generative AI mannequin referred to as Qwen, B2B and B2C marketplaces, an e-commerce market, and a cloud computing service platform referred to as Alibaba Cloud. The Cloud Model Studio permits companies to customise generative AI fashions, and Alibaba Cloud hosts different fashions as properly, together with the buzzy DeepSeek-V3 and DeepSeek-R1 fashions.
Like its U.S. counterparts, Alibaba goes all-in on generative AI. Its cloud computing enterprise noticed an 11 % year-over-year improve in income in December 2024. AI-related product gross sales have skilled triple-digit development for the sixth consecutive quarter, signaling sturdy enterprise demand for AI-powered options.
Strategic AI offers and partnerships
Alibaba’s newest AI funding follows its dedication to advancing synthetic intelligence, which the corporate introduced on Feb. 21. Earlier this month, Alibaba struck a take care of Apple to supply AI providers through its Qwen mannequin in China. The partnership aligns with Apple’s technique of increasing AI capabilities and will assist increase iPhone gross sales within the Chinese market.
Beyond conventional AI purposes, Alibaba additionally dedicated to creating synthetic common intelligence, the Holy Grail of generative AI firms that may, theoretically, create a machine as sensible and adaptable as a human being.
“Looking ahead, revenue growth at Cloud Intelligence Group driven by AI will continue to accelerate,” Alibaba Group CEO Eddie Wu stated in a press launch. “We will continue to execute against our strategic priorities in e-commerce and cloud computing, including further investment to drive long-term growth.”
Alibaba’s AI technique aligns with China’s imaginative and prescient
Alibaba’s ambitions are intently linked to China’s broader push for technological dominance. According to Fortune, co-founder Jack Ma met with Chinese President Xi Jinping, signaling potential authorities backing for Alibaba’s AI enlargement.
