Alibaba Group Holding Ltd. shares surged to a nearly four-year high after the company announced plans to increase its spending on artificial intelligence, exceeding an initial target of over $50 billion. The move aligns Alibaba with other tech giants committing substantial capital to the global AI race.
Chief Executive Officer Eddie Wu stated that the company will expand upon a three-year plan outlined in February to invest more than 380 billion yuan ($53 billion) in developing AI models and infrastructure. He anticipates that worldwide AI investment could accelerate to approximately $4 trillion over the next five years, emphasizing the need for Alibaba to maintain its competitive edge.
As part of this strategic expansion, Alibaba’s cloud division will launch its first data centers in Brazil, France, and the Netherlands within the coming year.
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