Sou Hu Cai Jing·2025-07-30 13:11Core Insights - Alibaba's CFO Xu Hong announced significant investments totaling 430 billion yuan (approximately 61 billion USD) in AI and cloud infrastructure, marking an unprecedented commitment among private enterprises in China [2] - The investments are aimed at enhancing AI capabilities and stimulating domestic demand, reflecting Alibaba's belief in the vast potential of the AI market in China [2] - The company plans to leverage AI to transform its e-commerce platform, with notable growth in new brand registrations on Taobao's flash sales platform [2] Investment Details - Alibaba will invest 380 billion yuan (approximately 54 billion USD) over the next three years in building AI and cloud hardware infrastructure [2] - An additional 50 billion yuan (approximately 7 billion USD) will be allocated to subsidize consumers and merchants on Taobao's flash sales [2] - The total investment exceeds Alibaba's total investments over the past decade, highlighting the scale of this commitment [2] Market Context - Xu Hong emphasized that the current investment may seem substantial, but the future market potential for AI is expected to justify it [2] - The AI market in China is viewed as the largest globally, with significant demand anticipated to drive innovation in AI applications [2] - Amazon has also announced plans to invest 100 billion USD in AI-related projects, indicating a broader trend among major tech companies to prioritize AI development [2][3] E-commerce Transformation - The introduction of AI is expected to revitalize Taobao, with a reported 110% month-over-month increase in new brand registrations in July [2] - The shift towards instant retail aims to address traditional e-commerce challenges, enhancing customer experience and driving foot traffic to physical stores [2]