Alibaba Group Holding Ltd.’s stock has risen the most in about two weeks after the company announced a series of moves intended to solidify its position in China’s AI development boom.
The E-commerce leaders have achieved over 7% in early Hong Kong sales, mirroring overnight growth in the US. The Chinese company’s gain has exceeded 80% this year, a rally driven by bold moves to develop into the fledgling field of AI.
This week, Alibaba Group raised $3.2 billion in convertible bonds to bankroll the country’s massive AI infrastructure budget and cloud service. It reveals the update to flagship Qwen-series models, which are designed to contend with DeepSeek and OpenAI. The Information reported that Alibaba and Baidu Inc. are developing in-house chips in the trend of AI, replacing costly Nvidia Corp. accelerators. Baidu’s stock rose nearly 13% in Hong Kong, reaching its highest level since October 2024.
Alibaba is making a comeback in the industry after years of regulatory scrutiny thrashed its internet business. Jack Ma co-founded the firm and has established himself this year as the frontrunner of a nationwide AI frenzy. It has since declared itself wholly in pursuit of artificial general intelligence – the holy grail for many tech companies.
Also read: Lee Warns US Immigration Raids Could Discourage Investment
Its current move is directing growing positivity towards the outlook for a technology expected to revolutionise industry and economies. Oracle Corp. this week helped ignite a sectoral rally after giving a blowout outlook for global AI spending.
