Alibaba Asserts Chinese Tech Dominance, Vows Major AI Focus In The Next 3-5 Years: 'We Have The Upper Hand In The Trade War' - Alibaba Gr Hldgs (NYSE:BABA)

Alibaba Group Holding‘s BABA Chairman, Joe Tsai, has announced that the tech giant plans to integrate artificial intelligence (AI) into its operations within the next three to five years.

What Happened: Tsai unveiled Alibaba Group Holding BABA’s future AI-driven strategy at AliDay, the company’s annual event for employees and their families. Tsai stated, “In the next three to five years, all of our businesses should be driven by AI,” reported the South China Morning Post. Founder Jack Ma was also in attendance at the annual event.

Tsai views AI as a crucial tool to expand Alibaba’s user base across its e-commerce and other business sectors. During the two-day event, Tsai and Chief People Officer Jane Jiang Fang addressed several questions from the staff, including the impact of the U.S.-China trade war on the company and the country.

Tsai expressed confidence in China’s position in the trade war, stating, “We have the upper hand in the trade war.” The Chairman explained that a significant portion of China’s exports to the U.S. includes high-tech products with intricate supply chains, unlike American exports like oil and soybeans, which are easier to replace.

Why It Matters: This announcement comes after Alibaba’s recent launch of Qwen 3, its most advanced artificial intelligence model to date. The system features hybrid reasoning capabilities, blending traditional AI tasks with enhanced problem-solving skills. This move towards AI integration aligns with Alibaba’s ongoing efforts to stay at the forefront of technological innovation.

In February, the company announced a record capital expenditure of 380 billion yuan ($52.4 billion) over three years to boost computing resources and AI infrastructure.

Notably, the Chinese tech giant has begun allowing employees from its six major business groups to communicate through an internal website, aiming to foster synergies across its operations following a major restructuring two years ago.

Price Action: Alibaba ADRs slid 0.37% to close at $125.33 on Friday. On a year-to-date basis, the ADRs climbed 47.53%, according to Benzinga Pro.

According to Benzinga Edge Stock Rankings, Alibaba has a growth score of 73.51% and a momentum rating of 93.82. Click here to see how it compares to other leading tech companies.