Alibaba AI budget raised by over 5 billion USD, stock price up by over 9%

Alibaba ( announced on 9/24 an increase in its AI investment plan, exceeding the original approximately 5.3 billion USD, which drove Hong Kong stock prices to surge over 9%, reaching a new high in nearly four years. CEO Wu Yongming stated at the Hangzhou Developer Conference that global AI investment is expected to soar to 4 trillion USD within five years, and the company must continue to increase its investment while simultaneously launching its latest large language model Qwen3-Max and self-developed chips.

Stock prices surge to a four-year high, as the market is optimistic about the AI boom.

Alibaba's Hong Kong stock price surged more than 9% in a single day, reaching its highest level in nearly four years since December 2021, while also driving China's chip manufacturer ACM Research up by 15% and Northern Huachuang Technology up by 10%.

Investors believe that strong demand for AI and increased returns are key factors that encourage companies to continue investing large amounts of capital.

CEO Wu Yongming announced an additional $5.3 billion AI investment plan, driving the company's stock price in Hong Kong up by over 9%. He announced an additional investment of about $5.3 billion, with further increases expected in the future.

Wu Yongming stated at the Hangzhou Developer Conference that the development speed of the AI industry far exceeds expectations, and the demand for AI infrastructure is also beyond imagination. Therefore, Alibaba is actively promoting an investment plan of about 5.3 billion dollars, and it is expected to increase the investment further.

Alibaba Cloud will also establish its first data centers in Brazil, France, and the Netherlands within the next year, extending the global cloud landscape from the United States all the way to Australia. The Qwen3-Max large language model and upgraded services released at the same event indicate that Alibaba is continuing to expand its AI technology layout.

Recent financial reports have shown impressive performance, benefiting from the revenue growth of AI products.

According to Alibaba's latest financial report, revenue from AI-related products has grown by more than three digits, while cloud business revenue increased by 26% year-on-year, expected to become the fastest-growing business within the group.

Union Bancaire Privee ) Senior Analyst Vey-Sern Ling pointed out that companies will only increase their investments when return visibility improves. The fact that Alibaba is willing to further expand its AI capital expenditures indicates that they are quite optimistic about market demand and investment returns.

Chinese technology giants are fully entering AI, with budgets exceeding 30 billion USD.

According to reports, Alibaba is not the only Chinese company investing in AI. Currently, Huawei has launched a three-year blueprint to challenge Nvidia and has introduced a new generation of AI chips and the "SuperPod" data center platform.

Large technology companies such as Tencent, Baidu, and JD.com continue to increase their investments, with the four companies expected to spend a total of $32 billion on AI infrastructure and services in 2025, significantly higher than the budget of less than $13 billion in 2023.

On the Alibaba side, as early as 2018, it acquired Hangzhou Zhongtian Micro Systems and established the semiconductor division "Pingtouge" ( T-Head ). The latest chips have already been adopted by China Unicom, indicating that its independent research and development has gradually taken shape.

China faces US chip bans, and companies can only strive for independent research and development.

The United States continues to impose export controls on high-end AI chips to China, including the RTX Pro 6000D from NVIDIA, which could potentially be used for training AI. The Chinese government has also instructed domestic companies not to use such chips, forcing major Chinese tech firms to accelerate independent research and development.

Alibaba is actively developing its own AI accelerators, as well as high-performance computing and networking equipment, with the goal of reducing dependence on the American supply chain. On the other hand, although Huawei amazed the market with the launch of its 7-nanometer smartphone chip in 2023, whether it can further mass-produce higher-end processes remains to be seen.

( Ark has bought Alibaba after a four-year hiatus, viewing the recovery of Chinese AI technology with optimism )

This article discusses Alibaba's AI budget increase of over 5 billion USD, with stock prices rising by over 9%. It first appeared in Chain News ABMedia.