From Nasdaq: 2025-02-24 16:04:04

Alibaba Group’s shares dropped after announcing a $52 billion investment in AI and cloud infrastructure over three years. This move highlights a shift towards AI-driven growth and global cloud dominance.

Despite a recent 40% stock surge, U.S.-listed shares fell over 5% in response to the massive investment plan. Alibaba aims to enhance efficiency, engagement, and innovation across its digital ecosystem through this strategic move.

Investors are cautious about Alibaba’s significant AI spending, especially with competition from other tech giants like Baidu and Tencent. The company’s strong fiscal performance, including a 13% revenue increase in Cloud Intelligence Group, supports its strategic direction.



Read more at Nasdaq: Alibaba Embarks On $52 Bln AI Investment Amid Market Volatility