Alibaba recently inked partnership with US consumer electronics company Apple to roll out AI features for iPhone users in China. Moreover, it has unveiled its latest AI model, Qwen 2.5-Max, which boasts enhanced math and coding capabilities and has outperformed other leading AI models such as US-based OpenAI's GPT-4o and DeepSeek's V3.

Alibaba Group is planning to spend more money on building out cloud and AI infrastructure over the next three years than it has in the past decade. Speaking during the company's Fiscal Year 2025 Q3 earnings call, CEO Eddie Wu noted that the company was planning to scale up its investments as part of its AI strategy.

For the three months ended Dec. 31, the Chinese tech giant's revenue jumped 8 percent year-over-year to 280.1 billion renminbi, or $38.3 billion, beating analyst expectations.

CEO Eddie Wu said Alibaba will ‘aggressively invest’ in AI infrastructure and bolster research and development on advanced new AI models.