Alibaba stock soars on expected AI spend, Nvidia pact Ines FerréSeptember 25, 2025 at 12:36 AM 0 Alibaba (BABA) stock soared to its highest level in almost four years after the ecommerce and cloud giant said it will boost AI spending beyond its original commitment of more than $50 billion, joining t...
- - Alibaba stock soars on expected AI spend, Nvidia pact
Ines FerréSeptember 25, 2025 at 12:36 AM
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Alibaba (BABA) stock soared to its highest level in almost four years after the e-commerce and cloud giant said it will boost AI spending beyond its original commitment of more than $50 billion, joining the ranks of US Big Tech players' escalating bets on artificial intelligence.
US-listed American Depository Shares (ADRs) jumped 9% after CEO Eddie Wu said during a conference in China that a worldwide investment in artificial intelligence is estimated to reach $4 trillion over the next five years, and Alibaba must keep pace.
Wu said the company will expand on its February plan to devote over $53 billion toward building AI models and infrastructure over three years, though he did not specify how much higher the investment would go.
The company also unveiled Qwen3-Omni, an open-source model that can handle text, images, audio, and video as it pushes into generative AI.
Alibaba also announced a software deal with Nvidia (NVDA) to integrate the chip giant's AI development tools used for training for robotics and self-driving cars. The financials of the deal were not released.
The agreement marks a collaboration between the two companies at a time when US-Beijing trade relations remain fragile.
Alibaba and other Chinese tech companies have been working on developing AI chips to fill the void left by regulatory challenges concerning Nvidia's role in China as Beijing has made moves to wean itself off of its reliance on US chips.
During his talk at the conference in Hangzhou, China, Wu underscored the company's cloud ambition to establish itself as a top "full-stack" artificial intelligence provider, which includes its AI chip technology.
Alibaba's cloud unit, which services clients abroad including the US and Australia, will expand data center openings into Brazil, France, and the Netherlands.
The company's lean into AI comes as Amazon (AMZN), Alphabet (GOOGL, GOOG), Microsoft (MSFT), and Meta (META) are set to invest a cumulative $364 billion in the technology in their respective 2025 fiscal years, up from their prior estimates of around $325 billion.
Alibaba stock surged to its highest level in nearly four years as the company said it would spend more on AI than it previously anticipated. STAR MAX File Photo: An Alibaba Logo shot off an iphone. (STRF/STAR MAX/IPx)
While Alibaba is often compared to Amazon for its outsized e-commerce business, its cloud computing business has been rapidly growing, helping send the stock up more than 112% year to date.
Cloud revenue grew 26% year over year during its April to June quarter, with Wu saying AI and cloud are Alibaba's engines of growth alongside e-commerce.
Ark Invest's Cathie Wood bought more than $16 billion in Alibaba stock for the first time since 2021 on Monday, with about half going into the Ark Fintech Innovation ETF (ARK-F) and the other half into ARK Next Generation Internet ETF (ARK-W).
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.
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