Like its U.S. counterparts, Alibaba is going all-in on generative AI. Its cloud computing business saw an 11 percent year-over-year increase in revenue in December 2024. AI-related product sales have experienced triple-digit growth for the sixth consecutive quarter, signaling strong enterprise demand for AI-powered solutions.

The Chinese technology giant first mentioned the plan last week when it reported results but didn’t provide a specific figure.

The investment signals Alibaba’s ambition to compete with AWS, Microsoft Azure, and Google Cloud as it expands beyond its core e-commerce business.