Alibaba is going all in on trying to beat the US at developing AI that can reason like a human being

Core Insights - Alibaba is focusing on artificial general intelligence (AGI) as its primary goal, aiming to develop models that extend the boundaries of intelligence [1][8] - The company reported an 8% increase in revenue for the quarter ending in December, amounting to 280.2 billion yuan ($38.6 billion), with profits rising to 48.9 billion yuan, surpassing analysts' expectations [2][8] - Alibaba plans to invest at least 380 billion yuan ($53 billion) in cloud computing and AI infrastructure over the next three years to compete with US tech giants [4][8] Industry Context - Other US-based companies pursuing AGI include OpenAI, Google, Meta, and Microsoft, indicating a competitive landscape [2] - The potential of AGI is highlighted by studies suggesting it could replace or achieve 80% of human capabilities, which could significantly impact global GDP [3] - The recent rise of Chinese tech companies in AI, particularly following the emergence of DeepSeek, has shifted investor focus towards them [5][6] Market Reaction - Alibaba's shares have increased by 70% year-to-date, driven by developments in AI and partnerships, such as working with Apple [5] - The meeting between Chinese leader Xi Jinping and top tech leaders, including Alibaba's co-founder Jack Ma, is perceived as a sign of improved relations between the government and the private sector [6][7] - Despite recent gains, Alibaba's shares experienced a 2.5% decline on a particular day due to broader market pressures [7]