Alibaba Accelerates Global AI Push, Targets Overseas Data Centers

Alibaba Group Holding's (NYSE:BABA) cloud computing unit looks to extend its artificial intelligence (AI) services, including its Qwen family of models, to its overseas data centers by 2025.

The company planned to offer its flagship Qwen large language models, as well as Model Studio, which also provides access to third-party models, through its major data centers worldwide, SCMP reported on Tuesday, citing Liu Weiguang, senior vice-president of Alibaba Cloud, at an event.

Alibaba currently operates 29 data centers, including two in the US, one in London, one in Dubai, and 15 across mainland China and Hong Kong.

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Recently, Alibaba shared plans to open a second South Korean data center by June, marking its attempts to unlock value via geographical expansion.

Liu Weiguang highlighted related partnerships with tech giants such as Microsoft Corp. (NASDAQ:MSFT), Siemens (OTC:SIEGY), and Nvidia Corp. (NASDAQ:NVDA). He added that Alibaba planned to secure more partnerships this year, especially in AI and embodied intelligence, to further strengthen its ecosystem.

Alibaba co-founder and Chair Joe Tsai opted to open-source its Qwen models, citing their potential to drive demand for artificial intelligence (AI) applications and cloud computing.

The company has committed at least 380 billion yuan ($52 billion) in cloud computing and AI infrastructure over the next three years.

Alibaba stock surged over 51% in the last 12 months. Benchmark analyst Fawne Jiang noted Alibaba as a leading beneficiary of accelerated AI adoption in China.

Price Action: BABA shares are trading higher by 1.78% to $115.10 premarket at last check Tuesday.

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