The global race to dominate artificial intelligence is forcing tech giants to spend at unprecedented levels, and Alibaba Group (NYSE:BABA) is the latest to signal it will go further.
Shares in the Chinese group jumped 9% in US premarket trading on Wednesday after chief executive Eddie Wu said the company would expand on its earlier pledge to invest more than $50 billion over three years in AI models and infrastructure.
He noted demand for computing power and data capacity had already surpassed expectations, with global investment in the sector likely to reach US$4 trillion over the next five years.
Alibaba’s cloud division, which already spans markets from the US to Australia, plans to open its first data centres in Brazil, France and the Netherlands in the coming year.
It is also rolling out its Qwen models and broader “full stack” AI systems, from software to semiconductors.
The announcement fuelled gains in Chinese chipmakers, while Ark Invest’s Cathie Wood disclosed fresh positions in Alibaba, citing growing official support for private enterprise and the company’s international expansion.
Ahead of the bell, the shares were marked $14.51 higher to $77.59.