Alibaba Bets Big on AI: Cloud Growth Soars, $52 Billion Investment Signals Global Ambitions

Alibaba Group is setting the pace in China’s AI race, outspending domestic rivals while showing strong revenue momentum in its cloud and AI business. The company’s cloud division reported its fourth straight quarter of double-digit growth, signaling that the Hangzhou-based tech giant is determined to lead both at home and abroad.

In the three months ending September 30, Alibaba Cloud’s revenue jumped 34% year-on-year to 39.8 billion yuan (about US$5.6 billion). The company’s overall revenue for the quarter reached 247.8 billion yuan. This growth rate puts Alibaba Cloud on par with some of the world’s top cloud providers: Microsoft Azure and Google Cloud posted growth of 40% and 33.5% respectively during the same period, according to Jefferies equity analyst Thomas Chong.

Chong added that the strong momentum is expected to continue into the December quarter. “After reviewing earnings from more than 40 companies, our 2026 outlook remains positive. AI continues to present multiple growth catalysts,” he said.

Alibaba CEO Eddie Wu Yongming, who also chairs Alibaba Cloud, emphasized that surging demand for AI services could lead the company to increase its AI infrastructure investment even further. Earlier this year, Alibaba committed a staggering US$52 billion for computing and AI infrastructure—the largest computing project ever financed by a private Chinese company.

Wu explained that the company is already working hard to meet rising customer demand. “The pace at which we can add new servers isn’t enough to keep up with growth in customer orders,” he said, suggesting that capital expenditure may rise even further to support expansion.

Alibaba’s aggressive spending strategy sets it apart from other Chinese tech giants like Tencent Holdings and Baidu. The company is clearly aiming to secure a leading position in global AI development, not just within China.

Alibaba Cloud has also been making strategic moves in AI innovation. Its Qwen family of AI models, including open-source systems and a multipurpose consumer chatbot app, highlights its focus on creating advanced AI solutions for both enterprises and individual users.

With a combination of record growth, massive investment, and cutting-edge AI initiatives, Alibaba is sending a clear signal: it wants to be at the forefront of the global AI revolution, and it’s willing to spend big to get there.