Alibaba Group Holding Limited unveiled the Zhenwu V900 AI chip at its Apsara conference. The company committed to investing over $53 billion in artificial intelligence over the next three years. This strategy includes the launch of three new AI enterprise products. Alibaba aims to scale its Qwen large language models and build new data centers in Europe and the Middle East.
Market response to the investment plan remained split. Alibaba’s Hong Kong-listed shares rose following the news. However, U.S.-listed shares fell more than 3% in pre-market trading.
Investors cited concerns over high capital expenditure and potential impacts on profitability. Broader worries regarding a Chinese regulatory probe into domestic AI firms also weighed on the U.S. stock. Citi analysts maintained a buy rating, forecasting significant long-term growth in AI cloud revenue.