Chinese retail giant Alibaba joins DeepSeek in making plans to invest in AI. As reported by Reuters on Monday, the company plans to spend at least 380 billion yuan, or $52.44 billion, over a three-year period.
“We aim to continue to develop models that extend the boundaries of intelligence. Why is that the primary aim?” Eddie Wu, the company’s CEO, said during an earnings call last week.
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“Well, it’s because all of the visible AI application scenarios today that we see around content creation, search and so on and so forth have arisen precisely as a result of the ongoing extension of those boundaries, and we want to keep pushing out those boundaries to create more and more opportunities.” He added.
The news of the investment comes as Apple’s alleged partnership with Alibaba to roll out AI features in iPhone users in China was speculated earlier this month.
Alibaba’s investment in AI could lead to enhanced ecommerce experiences through personalized recommendations, improved customer service, and smarter logistics. AI can also optimize operations like inventory management and supply chains, boosting efficiency. For Alibaba Cloud, AI-powered services could attract more businesses, strengthening its competitive edge.
The company may also create new AI-driven products across industries like healthcare, finance, and entertainment, expanding its market reach. With AI becoming crucial for future growth, Alibaba’s focus on this technology could help it stay competitive globally, alongside other tech giants, driving innovation and diversifying its revenue streams.
Meanwhile, as reported by Bloomberg News on Monday, President Donald Trump is supposedly planning to toughen semiconductor restrictions on China, continuing and expanding the Biden administration’s efforts to limit Beijing’s technological prowess.
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The U.S. semiconductor restrictions against China could significantly impact China’s tech industry, limiting access to advanced semiconductor technology and slowing the development of companies like Huawei and SMIC. This could also cause supply chain disruptions, delaying the production of electronics globally.
To counter this, China may increase efforts to develop its own semiconductor capabilities, reducing reliance on foreign tech in the long run. These restrictions could shift the global semiconductor market, with countries like Taiwan and South Korea playing a larger role. Additionally, it may increase geopolitical tensions between the U.S. and China, fueling further competition in tech.