TLDRs:
- Alibaba shares rose 8.19% on Nvidia AI integration, boosting developer and investor confidence.
- CEO Eddie Wu plans to increase AI investments beyond US$53 billion by 2027.
- New data centers in eight countries support Alibaba Cloud’s global expansion strategy.
- AI Catalyst Program offers developers cloud credits, strengthening Alibaba’s AI ecosystem worldwide.
Alibaba Group Holding Limited (BABA) saw a strong surge in its stock price on Wednesday, closing at 176.44 HKD, up 13.36 HKD (+8.19%), following the announcement of its integration with Nvidia’s AI software.
The stock continued to gain in after-hours trading, reaching 177.69 HKD (+1.25 HKD, +0.71%), reflecting investor optimism about Alibaba Cloud’s new AI capabilities.
The integration allows Alibaba Cloud customers to access Nvidia’s Physical AI software stack for projects such as robotics and autonomous vehicles. This move strengthens Alibaba’s cloud offerings and signals a significant step forward in its strategy to lead in AI-driven solutions.
CEO Confirms Increased AI Investment
Alibaba’s CEO, Eddie Wu, confirmed at the annual Apsara developer conference that the company plans to expand investment in AI infrastructure and models beyond the previously stated 380 billion yuan (US$53 billion) through 2027.
The announcement came alongside the Nvidia integration, reinforcing Alibaba’s long-term commitment to artificial intelligence as a core strategic focus.
The market responded positively, with Alibaba shares rising sharply in Hong Kong. AliCloud, the company’s cloud computing division, reported a 26% increase in quarterly sales, the fastest growth among all business units, highlighting strong momentum in its AI and cloud operations.
Expanding Cloud Infrastructure Globally
Alibaba Cloud also revealed plans to establish new data centers in eight countries, including Brazil, France, and the Netherlands this year, with expansions into Mexico, Japan, South Korea, Malaysia, and Dubai next year. Regional service centers will be set up in Germany and Indonesia to better support customers in these regions.
Currently, Alibaba Cloud operates 91 availability zones across 29 regions, underscoring its competitive global presence.
The expansion aligns with growing international demand for cloud services and AI solutions, strengthening Alibaba’s position in the global cloud market.
Developer Ecosystem Strengthened
Alibaba launched the AI Catalyst Program to provide selected AI companies with access to its tools and up to US$120,000 in cloud credits.
The initiative is designed to accelerate AI innovation and adoption worldwide, giving developers the resources to leverage Alibaba Cloud’s AI capabilities effectively.
Analysts note that combining Nvidia’s advanced AI stack with Alibaba’s cloud platform provides a unique advantage for developers, enabling faster deployment of AI solutions while reducing infrastructure costs.
That said, Alibaba’s combination of Nvidia AI integration, increased investment, and global expansion positions the company for continued growth in AI-powered cloud computing. With the stock rising significantly, investor sentiment remains bullish, and market watchers will closely track AliCloud’s performance in the coming quarters.
