Alibaba Shares Surge on AI

Alibaba's stock experienced a significant surge, gaining 8% following strategic moves to reinforce its position in China's rapidly expanding AI sector. These initiatives signal investor confidence in Alibaba's commitment to AI development.

Alibaba has begun utilising its own Zhenwu processing unit for smaller AI model training since early 2025. This transition marks a step in decoupling from Western semiconductor technology, driven by US export restrictions on advanced chips. Simultaneously, the Chinese government is encouraging domestic companies to use locally developed chips.

Alibaba unveiled its most ambitious AI model, Qwen-3-Max-Preview, entering trillion-parameter territory. The company has committed 380 billion yuan (US$52 billion) to AI infrastructure investments over the next three years. This signals China's growing AI capabilities and challenges Western dominance.