Alibaba shares have gone sky-high to a 4-year high following a company announcement that it will augment its artificial intelligence (AI) budget to over 50 billion. This significant growth has given the Chinese tech giant a high belief in the market and a turning point in its global AI race.
Alibaba’s Massive AI Investment
Earlier this year, Alibaba had outlined plans to spend over 380 billion yuan (around $53 billion) on AI infrastructure and models over three years. Now, CEO Eddie Wu has confirmed the company will hike this investment even beyond that massive figure, underlining Alibaba’s ambition to build world-class AI capabilities. The company unveiled its most advanced AI model, Qwen3-Max, which uses more than 1 trillion parameters, making it one of the largest and most powerful models in the world.
New Qwen3-Max AI Model Launched
During the same conference, Alibaba also introduced its latest and most powerful AI model, Qwen3-Max. This model contains over 1 trillion parameters, putting it on the same level as global leaders in AI. The new model is expected to boost Alibaba’s cloud division, which already saw sales grow by 26%, as it powers advanced applications in code generation, text, and secure data handling.
Impact on Alibaba’s Share Price
The announcement triggered a sharp rally in Alibaba’s stock. Shares jumped up to 9% in Hong Kong, reaching their highest level in four years. The surge added billions to Alibaba’s market value. The company’s cloud division has also seen a 26% jump in sales, fueled by the rising role of AI, making it the fastest-growing unit in Alibaba’s group.
Why Alibaba is Spending So Much on AI
Alibaba’s CEO explained that global AI investment is expected to reach $4 trillion in the next five years. To remain competitive against rivals like Tencent, JD.com, and U.S. tech leaders such as Meta and OpenAI, Alibaba is ramping up efforts on both software and hardware for AI. The company is planning new data centers in several regions, increasing its global presence.
Positive Signs for China’s Tech Sector
Other Chinese technology and chip firms, including ACM Research and NAURA, also experienced an increase in their stock prices upon the announcement of Alibaba. According to industry analysts, such investments are driving the expansion of the local semiconductor and AI market in China, particularly with U.S. rules restricting the availability of some high-tech chips.
New AI Model and Global Ambitions
At a Hangzhou developer conference, Alibaba introduced the Qwen3-Max AI model, claiming it surpasses competitors in several benchmarks. In addition to advancing its own models, Alibaba is working on developing its own chips and strengthening its data center network to support global AI services.