Alibaba to invest $53 billion in AI infrastructure over the next 3 years

Alibaba is planning to invest over $53 billion in AI infrastructure, including AI data centers, in the next three years.

According to a Bloomberg report, the company revealed that it also plans to form key partnerships with businesses developing AI applications for the real world, in an official blog post. 

Alibaba is not the only company that is heavily investing in data centers. By 2025, Meta intends to invest $65 billion in its AI operations, and Microsoft will invest approximately $80 billion in its data centers.

It appears that Alibaba’s priorities have shifted explicitly after the launch of DeepSeek, which released a model trained at a fraction of the cost of its competitors. 

Investors have been quite optimistic about Alibaba’s venture into AI. Wall Street, however, is uncertain about the demand for huge data centers after the DeepSeek R1 model’s release. 

Regardless of these uncertainties, Alibaba has already gained a market value of over $100 billion in 2025. Furthermore, Jack Ma’s presence at President Xi Jinping’s summit shows the company has renewed acceptance in China.