Alibaba to spend $53B on AI infrastructure by 2028
What's the story
Alibaba Group Holding Ltd has announced a massive investment of $53 billion in artificial intelligence (AI) infrastructure, including data centers, in the next three years.
The move highlights the e-commerce giant's ambition to become a global leader in AI technology.
The company plans to outspend its previous decade's expenditure on AI and cloud computing network, it said on its official blog.
Strategic shift
AI ambition amid regulatory challenges
In the wake of regulatory challenges since 2020, Alibaba is realigning its business strategy. The company is now refocusing on e-commerce and AI technologies.
Last week, CEO Eddie Wu announced that Artificial General Intelligence (AGI) is now their primary goal, putting them in the same league as leading AI entities like OpenAI, Microsoft, and Alphabet.
Investment comparison
Investment compared to US tech giants
Alibaba's three-year investment plan falls short of its US counterparts.
Microsoft wants to spend $80 billion this fiscal year on AI data centers, while Meta has set aside roughly $65 billion for 2025.
This gap is partly because Alibaba is a relatively new player in this space, even though it has been running an AWS-like platform globally for years.
Market growth
Market value and AI advancements
Notably, Alibaba's market value has skyrocketed in 2025, adding more than $100 billion. However, it still remains below its pre-regulatory peak.
The company has also made progress in the AI space by creating the Qwen model that excelled in official benchmark tests.
This development highlights Alibaba's increasing prominence in the AI arena.
Tech integration
Alibaba's AI technology gains recognition
In a major vote of confidence in its AI capabilities, Apple is bringing Alibaba's AI technology to Chinese iPhones. The move marks a vote of confidence in Alibaba's technological prowess and its potential to emerge as a key player in the global AI landscape.