Alibaba Group Holding Ltd. (Baba) He starred on Wednesday a historical day in the Hong Kong Stock Exchange, with a rise of 6.6% that led to its actions at the highest level since 2021. The company’s titles accumulate a revaluation of more than 107% so far from 2025, driven by the announcement of an even more ambitious plan of artificial intelligence (AI), the presentation of new products and the global expansion of its data centers. In Wall Street, in Premarket, the action rises more than 9%
Hangzhou headquarters reported that it will reinforce its expense in the development of language models and technological infrastructureexceeding the initial goal of more than US $ 50,000 million. “We are actively proceeding with the investment of 380,000 million yuan (about US $ 53,000 million) in AI infrastructure, and plan to add more,” said Eddie Wu, CEO of the group, during the Annual Alibaba Cloud conference.
A global bet for AI
WU anticipated that world investment in artificial intelligence could reach US $ 4 billion in the next five years. “The industry development rate far exceeded what we expected, and the demand for AI infrastructure by the industry also far exceeded our forecasts,” the executive explained.
The expansion plan includes the opening of the first Alibaba data centers in Brazil, France and the Netherlands, together with new facilities in Mexico, Japan, South Korea, Malaysia and Dubai throughout 2025. The company seeks to consolidate Alibaba Cloud As an integral provider of AI services, capable of offering calculation power to train and display advanced models from their own data centers.
In this context, Alibaba presented the new version of its QWEN3-Max language model and a series of improvements in its artificial intelligence ecosystem “Full Stack”, which covers from software to chips designed in House.
Competition in China and tensions with the US
Alibaba’s announcement immediately had other actors in the Chinese technological sector. ACM Research semiconductor manufacturers (Shanghai) Inc. and Naura Technology Group Co. rose up to 15% and 10%, respectively. As part of a strategy shared by Tencent Holdings Ltd., Baidu Inc. and JD.com Inc., the company adds to the unprecedented investment wave in AI that seeks to reduce the dependence of US chip.
In parallel, Washington’s restrictions on the export of NVIDIA processors (NVDA) – Clave to train AI models – accelerated Beijing’s plans to develop its own semiconductor industry. The Chinese government recently urged companies to leave the RTX Pro 6000D of NVIDIA, which revived the urgency of designing local alternatives.
Alibaba has been working on that forehead for years. In 2018 he acquired the design firm of Hangzhou C-Sky Microsystems and founded its T-Head semiconductor division. Last week, a strategic client was achieved: China Unicom, the country’s second largest wireless operator in the country, will display the accelerators of the pingtouge, developed by the T-Head unit.
Huawei and the race for challenging Nvidia
Alibaba’s bet adds to Huawei Technologies Co.’s plans, which recently presented a three -year roadmap to compete with Nvidia. The company surprised in 2023 by launching a 7 nanometers chip for its 60 Pro Mate Smartphone, although it still faces difficulties to climb that technology.
The Rotary CEO of Huawei, Eric Xu, detailed the next developments in AI chips and the evolution of its “superpod” systems, a comprehensive platform of data centers inspired by the NVIDIA model.
Financial growth and perspectives
Alibaba’s turn towards artificial intelligence already shows results. In the last quarter, the company reported a three -digit growth in products linked to AI. Its cloud division recorded a 26% increase in sales, exceeding market expectations and consolidating as the fastest growing unit within the group.
“Companies only gain confidence to invest more when it improves the visibility of the benefits. The fact that it increases their investments in AI indicates a good demand for customers and a good return on the investment,” said Vey-Serern Ling, managing director of Union Bancaire Privée.
With a rising market capitalization and an unprecedented expansion plan, Alibaba is positioned not only as one of China’s technological giants, but also as a weight competitor in the global career for dominating artificial intelligence, in a context of growing tensions between Beijing and Washington.
Source: Ambito
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