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Sep 25, 2025 12:10 PM

Alibaba Surges 107% After Boosting AI Budget Beyond $50 Billion And Reporting Strong Cloud Growth

Alibaba Group (NYSE: BABA) stock climbed to its highest level in nearly four years after the company announced it would increase artificial intelligence spending beyond its previously disclosed $50 billion-plus target. The stock is trading lower on Thursday, but it is still up 107% year-to-date, surpassing the NYSE Composite index (which includes Alibaba) by over 12% in returns.

Incoming CEO Eddie Wu projected global AI investment could reach $4 trillion within five years and confirmed Alibaba will add to its February plan to spend 380 billion yuan ($53 billion) over three years on AI models and infrastructure, Bloomberg reported on Thursday.

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