Alibaba stock rose 8% after CEO Eddie Wu said AI spending will exceed its $53B plan

Alibaba raised its bet on artificial intelligence around twenty-four hours ago, and the company’s stock surged by 8% to close, hitting a level not seen in nearly four years, after CEO Eddie Wu said on stage in Hangzhou that the company is spending more than the $53 billion it had previously ￰0￱ didn’t say how much more, but he made it clear it won’t be ￰1￱ told the crowd that global AI spending could reach $4 trillion over the next five ￰2￱ said Alibaba has to match the pace or risk falling ￰3￱ alone moved the ￰4￱ company’s U. S.-listed ADRs spiked fast. That’s how serious investors are taking this arms ￰5￱ is now chasing the same wave Amazon, Microsoft, Alphabet, and Meta are riding, all expected to pour $364 billion into AI next year, way up from the $325 billion they estimated ￰6￱ launches Qwen3-Omni and partners with Nvidia Eddie also announced the launch of Qwen3-Omni, an open-source model that handles text, audio, images, and video.

It’s built for generative AI, which has become the heart of every major tech push this ￰7￱ model is part of Alibaba’s goal to build out its own AI stack, from software to ￰8￱ company also signed a deal with Nvidia to use its training tools for robotics and self-driving ￰9￱ dollar figure was given, but the deal ￰10￱ ￰11￱ made it harder for Chinese companies to buy Nvidia’s ￰12￱ Alibaba is working around ￰13￱ Chinese firms are also building domestic chips to replace ￰14￱ includes the ones used to train and run these large AI ￰15￱ said the company is aiming to become a “full-stack” AI provider, and that includes its own ￰16￱ now, its cloud division already works with clients in the ￰17￱ Australia, but now they’re ￰18￱ data centers are opening in Brazil, France, and the ￰19￱ will power the next generation of Alibaba’s AI ￰20￱ flood in as AI spending explodes Alibaba’s stock is now up 110% in 2025 ￰21￱ cloud revenue jumped 26% year-over-year in the second ￰22￱ said AI, cloud, and e-commerce are now the company’s three main engines of growth, and AI is taking the ￰23￱ Cathie Wood also made a big ￰24￱ Monday, she bought $16 billion worth of Alibaba ￰25￱ of it went into the Ark Fintech Innovation ETF, the rest into the Ark Next Generation Internet ￰26￱ was her first major buy of the company since 2021.

Meanwhile, Oracle is seeing the same ￰27￱ company is investing $35 billion in AI infrastructure for 2026, and that figure is expected to hit $65 billion by ￰28￱ to new deals with OpenAI, Meta, and SoftBank, its stock has soared, adding $390 billion in value this ￰29￱ everyone is convinced this growth is safe. There’s rising concern that deals like Nvidia’s with OpenAI might be inflating a ￰30￱ say Nvidia is basically investing in its own customers, which is a dangerous ￰31￱ O’Rourke, chief market strategist at Jonestrading, said Nvidia’s massive $4.3 trillion valuation means even small stock moves can shift billions of ￰32￱ called it “atypical market behavior” and said it shows we’re in a “bubble environment.” Others agree the risks are piling ￰33￱ Navellier, investment chief at Navellier & Associates, warned that the ￰34￱ market is now worth more than twice the size of the country’s ￰35￱ said, “We are clearly in uncharted waters.” Still, for now, the arms race keeps heating ￰36￱ X’s Dessai said the biggest risk right now isn’t overspending, it’s spending too ￰37￱ said, “The biggest risk right now is underspending, especially if you are a category leader.” Join Bybit now and claim a $50 bonus in minutes