Alibaba shares rose 3% in Hong Kong on Tuesday after the company unveiled a new AI chip and outlined plans to sharply expand its global data center capacity, according to CNBC.
The announcement underscores Alibaba's push to strengthen its position in AI infrastructure, particularly through its cloud arm. Investors responded positively to the news, sending the stock higher.
With the new chip and data center buildout, Alibaba appears to be preparing for rising demand for AI computing power. The company has not disclosed further details in the report, but the moves signal a more aggressive infrastructure strategy.