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Chinese billionaire Jack Ma’s company, Alibaba, is making a big move into artificial intelligence (AI) by investing $53 billion over the next three years to improve its AI technology, including building big data centres. This plan puts Alibaba in competition with major tech companies like Microsoft, Meta, and OpenAI.
Alibaba’s CEO, Eddie Wu, said the company is now focusing on developing Artificial General Intelligence (AGI), a type of AI that can think and learn like humans.
Facing Competition and ChallengesAlibaba is joining a global competition in AI development. Other tech giants like Microsoft and Meta are spending a lot of money on AI too. Microsoft plans to spend $80 billion this year, and Meta will invest $65 billion by 2025. Although Alibaba has been offering cloud computing services for years, it’s relatively new to this advanced area of AI.
One problem Alibaba faces is U.S. rules that stop Chinese companies from getting the latest AI chips from Nvidia, which are important for running AI programs. This could slow down Alibaba’s AI projects.
Regulatory and Market ChangesAlibaba has had a tough few years due to strict rules from the Chinese government that started in 2020. But things are looking up. Jack Ma, Alibaba’s co-founder, was recently seen at a business event with President Xi Jinping, which might mean better relations with the government.
To strengthen its cloud business, which is important for its AI work, Alibaba has lowered prices and invested in leading AI startups like Moonshot and Zhipu. Its own AI model, Qwen, has performed well in tests, showing that Alibaba can hold its own in this field.
Although Alibaba has gained back $100 billion in market value this year, it’s still not as valuable as it was before the government crackdown. With this big bet on AI, Alibaba hopes to regain its top position and be a major player in the global tech industry.
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