On Wednesday, the shares of Chinese tech giant Alibaba climbed 9% after the company’s CEO promised to allocate even more resources to AI development in a bid to stay ahead in the race with various tech firms, both local and foreign.
Eddie Wu made these remarks while launching Qwen3-Max, the company’s latest and largest AI model, at a conference the firm organized for this event. The company has already pledged to inject at least $60.6 billion over the coming three years. The announcement that even more resources would be directed to AI development was welcomed by investors as the rise in the price of company shares showed.
Zhou Jingren, Alibaba’s chief tech officer, revealed that the model they were unveiling on that day was built on more than a trillion parameters, values that controlled how the model processed data and made decisions. The company boasted that this particular model trounced rival models, such as those from DeepSeek and Anthropic, on several performance metrics. They cited a number of third-party sources as proof for these claims.
During his speech, Wu said that the industry was developing a lot faster than they had initially expected, and the demand for the needed infrastructure is now greater than the company had expected this demand could grow. This could be the reason why the firm was now pledging to inject even more resources to AI development than they had originally announced as their allocation for the coming years.
Wu mentioned that the current spend on AI development across the globe could easily exceed $45.8 trillion in just the coming 5 years. Locally in China, JD.com and Tencent have injected considerable resources in developing AI systems. These companies are rivals to Alibaba, and the firm wants to not only keep pace but also exceed what they could ever achieve in its ambition to not only dominate locally but internationally as well.
The release of the new model from Alibaba comes at a time when Beijing has discouraged local firms from using technology from companies like Nvidia due to concerns about national security, and also to boost the development of homegrown AI solutions and products.
The positive response to Wu’s revelation of the company’s intention to allocate more funding toward AI development mirrors what happened in the U.S. during the earnings season when companies like Alphabet Inc. (NASDAQ: GOOGL) (NASDAQ: GOOG), the parent company of Google, also saw their shares climb as investors expressed their support for the huge budgets that these tech titans were directing towards AI development.
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