Alibaba shares surge nearly 8% as firm expects to exceed $55.96 billion AI spending target
Shares of US-listed Chinese giant Alibaba surged nearly 8% on Wednesday after leadership provided a clear three-to-five-year outlook for artificial intelligence returns. The firm anticipates exceeding its original 380 billion yuan ($55.96 billion) three-year AI investment plan, as early returns encourage a rapid expansion of cloud-computing capacity.
However, the company missed fourth-quarter profit forecasts. Like its peers, Alibaba is capitalizing on the AI boom; revenue from its Cloud Intelligence Group climbed 38% to 41.63 billion yuan ($6.13 billion), slightly outpacing the previous quarter’s growth.
