Citigroup raised Alibaba's capital expenditure and revenue forecasts after the Apsara conference. Citi cited ambitious new artificial intelligence targets.
Alibaba plans to expand data center capacity to 20 gigawatts by 2032. Citi believes this could generate $168 billion in external AI cloud revenue by fiscal year 2033.
Alibaba unveiled its new Zhenwu V900 AI accelerator chip. The company also presented a roadmap for its next-generation Qwen foundation models.
Alibaba's strategy focuses on building its entire AI ecosystem. This includes proprietary chips, infrastructure, and advanced large-scale models. Citi reiterated its Buy rating on Alibaba stock despite the increased spending outlook.