Chinese tech giant Alibaba has unveiled an ambitious plan to invest 380 billion yuan (£41.5 billion) in artificial intelligence (AI) and cloud computing over the next three years. The move signals the company’s commitment to expanding its technological footprint as China increasingly turns to the tech sector to drive economic growth.
The announcement comes amid the re-emergence of Alibaba’s founder, Jack Ma, who recently made a high-profile public appearance alongside President Xi Jinping and other tech leaders at a summit in China. Ma, once a symbol of China’s entrepreneurial success, fell out of favor with Beijing in 2020 after publicly criticizing the country’s financial regulators. This led to the cancellation of Ant Group’s $37 billion initial public offering, once expected to be the largest in history. Following years of regulatory scrutiny and Ma’s retreat from public life, his return suggests a possible shift in Beijing’s stance on the tech industry.
At the recent summit, Ma was seen seated alongside top executives, including Liang Wenfeng of AI firm DeepSeek, as well as leaders from electric vehicle giant BYD and telecoms powerhouse Huawei. The gathering highlighted the Chinese government’s renewed focus on technological advancements as a key economic driver in the post-COVID era. Facing economic headwinds and increasing trade tensions with the United States, Beijing appears to be easing its restrictions on major tech firms to boost innovation and competitiveness.
Alibaba, which started as a business-to-business e-commerce platform, has since diversified into logistics, finance, and cloud computing. Its cloud division, Alibaba Cloud, is a major player in AI research and development, recently launching its own AI model, QWen, which is now available to iPhone users in China.
Eddie Wu Yongming, Alibaba’s chief executive, emphasized the significance of this investment, stating that the company plans to spend more on AI and cloud computing in the next three years than it has over the past decade. “We are excited by the business opportunities being unlocked by this new technology cycle,” Wu said. The company’s latest financial report further reinforced its strong market position, with quarterly profits reaching 48.9 billion yuan (£5.3 billion), surpassing market expectations.
China has identified AI and green technology as key pillars of its future economic growth. President Xi Jinping’s government is betting on homegrown tech champions to establish global leadership in these sectors. DeepSeek’s recent unveiling of an advanced, cost-effective AI model has fueled national optimism, though industry analysts remain cautious about its ability to compete with established U.S. tech leaders.
For Alibaba, government backing and strategic investments in AI and cloud computing offer an opportunity to reclaim its position at the forefront of China’s tech industry. However, it remains to be seen whether these efforts will enable China to close the gap with global AI leaders, a competition that will likely shape the future of the technology sector on a global scale.
