Alibaba Gains $50 Billion in Value

Alibaba shares jumped nearly 20% after the company reported triple-digit percentage growth in AI-related product revenue, Andrew Nusca reported for Fortune Tech.

The surge added $50 billion to Alibaba’s market capitalization and boosted shares of Chinese tech peers Baidu and Tencent. (Photo: Alibaba Group)

The Chinese e-commerce giant also posted a better-than-expected 26% increase in cloud computing sales, closely tied to AI. The results reassured investors rattled by a recent retail price war with Meituan and JD.com that had eroded profits and triggered a multibillion-dollar selloff last week.

The surge added $50 billion to Alibaba’s market capitalization and boosted shares of Chinese tech peers Baidu and Tencent.

Alibaba, operator of platforms including AliExpress and Lazada, is seen as a leader in China’s AI race.

An open question remains whether Alibaba will allow its margins to shrink further as it pours billions into developing its own large language models (LLMs). In February, CEO Eddie Wu said the company’s top priority is building artificial general intelligence (AGI).