{"id":245055,"date":"2025-09-22T00:04:13","date_gmt":"2025-09-22T00:04:13","guid":{"rendered":"https:\/\/www.europesays.com\/us\/245055\/"},"modified":"2025-09-22T00:04:13","modified_gmt":"2025-09-22T00:04:13","slug":"alibabas-ai-shift-could-make-it-a-1-trillion-company","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/245055\/","title":{"rendered":"Alibaba&#8217;s AI Shift Could Make It a $1 Trillion Company"},"content":{"rendered":"<p><a class=\"editor-rtfLink\" href=\"https:\/\/www.alibaba.com\/\" target=\"_blank\" rel=\"noopener\">Alibaba\u2019s<\/a> big bet on artificial intelligence (AI) could reportedly make it one of the world\u2019s biggest companies.<\/p>\n<p>That\u2019s according to a <a class=\"editor-rtfLink\" href=\"https:\/\/www.cnbc.com\/2025\/09\/20\/once-an-e-commerce-giant-alibaba-bets-future-on-billion-dollar-ai-overhaul.html\" target=\"_blank\" rel=\"noopener\">report<\/a> Saturday (Sept. 20) by CNBC, charting the Chinese tech giant\u2019s shift from eCommerce to AI.<\/p>\n<p>In the last three years, Alibaba has taken part in deals worth more than $3.3 billion, including investments in AI model startups Moonshot and MiniMax to robotics startup Limx Dynamics, the report said, citing data from PitchBook.<\/p>\n<p>Meanwhile, the company plans to spend $53.42 billion in AI and <a class=\"editor-rtfLink\" href=\"https:\/\/www.pymnts.com\/news\/ecommerce\/2025\/alibaba-resharpens-focus-on-ai-and-ecommerce\/\" target=\"_blank\" rel=\"noopener\">cloud infrastructure<\/a> over the next three years. More than $14 billion has been invested in AI infrastructure and research in the past year, <a class=\"editor-rtfLink\" href=\"https:\/\/cn.linkedin.com\/in\/sunvie\" target=\"_blank\" rel=\"noopener\">Wei Sun<\/a>, principal analyst at <a class=\"editor-rtfLink\" href=\"https:\/\/counterpointresearch.com\/\" target=\"_blank\" rel=\"noopener\">Counterpoint Research<\/a>, told CNBC.<\/p>\n<p>\u201cAlibaba is positioning itself as China\u2019s most aggressive AI investor,\u201d said Sun. \u201cThis level of spending is unprecedented among private Chinese firms and rivals the capex trajectories of U.S. tech titans.\u201d<\/p>\n<p>Alibaba could join a small group of American companies in seeing its market capitalization reach $1 trillion, up from its current level of less than $400 billion, <a class=\"editor-rtfLink\" href=\"https:\/\/www.linkedin.com\/in\/matthew-peterson-cfa-100\" target=\"_blank\" rel=\"noopener\">Matthew Peterson<\/a>, managing partner at <a class=\"editor-rtfLink\" href=\"https:\/\/www.petersonfunds.com\/\" target=\"_blank\" rel=\"noopener\">Peterson Capital Management<\/a>, told CNBC.\u00a0<\/p>\n<p style=\"text-align:center\">Advertisement: Scroll to Continue<\/p>\n<p>The company announced last month that AI products helped drive double-digit revenue growth, saying in an earnings report that Alibaba was \u201cembarking on a new chapter of entrepreneurship by investing in two strategic pillars of consumption and AI + Cloud.\u201d<\/p>\n<p>The company\u2019s cloud division <a class=\"editor-rtfLink\" href=\"https:\/\/www.pymnts.com\/earnings\/2025\/ai-related-products-help-drive-26percent-revenue-growth-alibaba-cloud-division\/\" target=\"_blank\" rel=\"noopener\">saw 26% year-over-year revenue growth<\/a>, driven in part by its customers\u2019 increasing adoption of AI-related products.<\/p>\n<p>\u201cDuring the quarter, AI-related revenue accounted for over 20% of revenue from external customers as AI demand continued to grow rapidly,\u201d Alibaba Group CEO <a href=\"https:\/\/www.alibabagroup.com\/en-US\/about-alibaba-leadership-1637927598568767488\" target=\"_blank\" rel=\"noopener\">Eddie Wu<\/a> said Friday during the company\u2019s quarterly earnings call. \u201cWe\u2019re also seeing AI applications driving great growth momentum of traditional products, including compute and storage.\u201d<\/p>\n<p>In other AI news, PYMNTS wrote last week about the technology\u2019s increasing use in <a class=\"editor-rtfLink\" href=\"https:\/\/www.pymnts.com\/news\/b2b-payments\/2025\/3-ways-ai-is-taking-the-headache-out-of-b2b-onboarding\/\" target=\"_blank\" rel=\"noopener\">B2B applications<\/a>, such as onboarding.<\/p>\n<p>\u201cWhat companies are starting to see is, hey, there are <a class=\"editor-rtfLink\" href=\"https:\/\/www.pymnts.com\/news\/b2b-payments\/2025\/b2b-invoice-to-cash-kpis-get-big-boost-from-ai\/\" target=\"_blank\" rel=\"noopener\">real applications<\/a> where AI can help,\u201d <a class=\"editor-rtfLink\" href=\"https:\/\/www.linkedin.com\/in\/ryanfrere\" target=\"_blank\" rel=\"noopener\">Ryan Frere<\/a>, executive vice president and general manager B2B at <a class=\"editor-rtfLink\" href=\"https:\/\/www.flywire.com\/\" target=\"_blank\" rel=\"noopener\">Flywire<\/a>, said in a recent interview with PYMNTS.<\/p>\n<p>Meanwhile, the PYMNTS Intelligence report <a class=\"editor-rtfLink\" href=\"https:\/\/www.pymnts.com\/study_posts\/smart-spending-how-ai-is-transforming-financial-decision-making\/\" target=\"_blank\" rel=\"noopener\">\u201cSmart Spending: How AI Is Transforming Financial Decision Making\u201d<\/a> showed that more than 8 in 10 CFOs at large companies are either already using AI or thinking about adopting it.<\/p>\n","protected":false},"excerpt":{"rendered":"Alibaba\u2019s big bet on artificial intelligence (AI) could reportedly make it one of the world\u2019s biggest companies. That\u2019s&hellip;\n","protected":false},"author":3,"featured_media":245056,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[691,106562,30521,738,2429,29801,50,751,158,67,132,68,756],"class_list":{"0":"post-245055","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-ai-investment","10":"tag-alibaba","11":"tag-artificial-intelligence","12":"tag-cloud-computing","13":"tag-ecommerce","14":"tag-news","15":"tag-pymnts-news","16":"tag-technology","17":"tag-united-states","18":"tag-unitedstates","19":"tag-us","20":"tag-whats-hot"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115245027635017747","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/245055","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=245055"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/245055\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/245056"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=245055"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=245055"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=245055"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}