Alibaba Expands $53B AI Investment as Cathie Wood Returns

Alibaba Group's stock has surged to its highest level in nearly four years following CEO Eddie Wu's announcement to increase AI investments beyond the original $53 billion plan, reflecting the company's commitment to expanding its AI infrastructure and capabilities globally. The firm anticipates global AI spending reaching $4 trillion over the next five years and is launching new data centers internationally along with upgraded AI models, which has contributed to renewed investor interest. Cathie Wood's Ark Investment Management has re-entered Alibaba after a four-year hiatus, purchasing approximately $16.3 million worth of shares through its ETFs, signaling confidence in Alibaba's AI strategy and cloud services amid a broader rebound in U.S.-listed Chinese tech stocks. This renewed investment aligns with Ark's broader focus on AI and technology sectors, as the firm also increased its stake in Baidu and maintains smaller holdings in other Chinese tech companies. Despite Alibaba facing challenges in its core e-commerce market from competitors like Pinduoduo, its heavy investment in AI and cloud infrastructure positions it for potential growth. Ark's return to Alibaba marks a strategic pivot to capitalize on China's tech resurgence and the global AI investment surge.