Alibaba Group (NYSE:BABA) has announced plans to invest $53 billion in artificial intelligence and cloud computing over the next three years, marking its largest-ever commitment to technological innovation.
The move comes as Chinese technology stocks, including Alibaba, surge to multi-year highs, fuelled by strong earnings and renewed investor confidence.
The company reported an eight per cent rise in quarterly revenue to 280 billion yuan, beating expectations.
Chief executive Eddie Wu highlighted Alibaba’s focus on AI-driven growth, which has been key to its recent momentum.
The update drove an initial surge in the share price in Hong Kong earlier before the stock dropped back.
The announcement followed a rare meeting between co-founder Jack Ma and President Xi Jinping, seen as a sign of improving relations between the Chinese government and the technology sector.