In a bold move, Alibaba plans to invest more in artificial intelligence (AI) over the next three years than it has in the past decade. During the earnings call on February 20, the Chinese tech giant highlighted that its AI investments are geared towards achieving artificial general intelligence (AGI).
Following this announcement, Alibaba’s stock surged, buoyed by an 8% increase in year-over-year revenues. CEO Eddie Wu emphasized the company’s commitment to pushing the boundaries of AI, stating that the visible applications we see today—like content creation and search—are the results of ongoing advancements in intelligence.
He believes that the pursuit of AGI not only creates new business opportunities but also holds the potential to significantly reshape industries worldwide. Wu noted that if AGI is realized, it could replace or replicate 80% of human capabilities, which could drastically impact global GDP, as approximately half of it is tied to human labor costs.
The drive for AGI is not unique to Alibaba; major tech players like OpenAI, Google, and Meta are also striving for this goal. OpenAI’s CEO, Sam Altman, recently expressed confidence in the company’s ability to build AGI, highlighting its potential transformative effects on business operations.
For instance, a single AI system could analyze market trends while redesigning supply chains, manage customer service interactions to inform product development and make strategic decisions by integrating insights from various sectors. Additionally, Alibaba’s recent earnings come alongside news of its collaboration with Apple to launch the latest AI-powered iPhone in China, further illustrating its commitment to advancing AI technology.
