The Alibaba Group Holding Ltd has not, But the company has claimed new fans once again. The frenzy over Chinese artificial intelligence and the market dynamic brought the giant into power and revived him. Alibaba’s displayed shares on the Hong Kong Stock Exchange shocked by the spike of 46% since rebounding from the 2025 low on January 13th; the share price increment took its market value up by almost $87 billion and surpassed the Hang Seng Tech Index’s by about 25% gain in the same period. Alibaba’s victorious story is the biggest among all other huge corporations in China in the new year, such as Tencent Holdings Ltd, Baidu Inc, and JD.com Inc.
In the midst of a steadily favorable atmosphere, the return of Alibaba symbolizes a mind-boggling turnaround for the firm that was once the talk of the world for all the wrong reasons. driven by the developing of its independent AI tools and platform is the very core of the recent excitation about Alibaba. The improvements in the company’s AI drove Chinese smart AI startup DeepSeek to unveil technologies that caused a rout on Wall Street, provoking an impressive comeback for Chinese tech stocks.
The shares of Alibaba Group were last //uplifted?/when reports leaked announcing the possible cooperation with Apple in the development of AI technologies in China. The effect of this news is the enhancement of the position of Alibaba in the Chinese AI tech landscape. The company’s resurgence in 2025 resulted from a year-long turnaround plan executed by Joe Tsai and Eddie Wu, who are among Jack Ma’s original lieutenants. They have stepped in as the chairman and CEO since 2023, and they were the initial co-founders who gave birth to Taobao in Ma’s residence at the lake, they have taken the delivery of the boat on their own after a great number of regulatory proceedings and economic problems that caused considerable harm to Alibaba’s cloud and consumer businesses.
Alibaba got ChatGPT and has invested in Moonshot and Zhipu, the new AI startups in China. Meanwhile, the company is enhancing its cloud computing services by reducing prices, which is the foundation of AI development, and thus attracting back the customers who had deserted for rival companies. Henceforth, this strategic change has helped Alibaba to become a leading player in the AI race together with companies such as Baidu and coming-up businesses within the dynamic tech backdrop in China.
In January 2025, Alibaba’s AI achievements reached the next level when the company made available benchmark scores that demonstrated that their Qwen 2.5 Max model had surpassed Meta Platforms Inc.’s Llama and DeepSeek’s V3 model in the tests that were conducted. This was a great achievement for Alibaba, having developed Arn, which is as good as its competitors, such as Tencent, the other giants in the market, and start-ups like Minimax and Zhipu. Not just the company’s incidence in AI but also its evidence for the development in the cutting-edge technology has made the investors to be more confident about the company and even let China be known for the growing technology in the globe.
Notwithstanding the company’s revival, it happens to take place in the broader context of weaker growth in the Chinese economy. China’s economic growth has decelerated to 4.6%, i.e., 2% lower than prior to the pandemic, which has made the technology rally more unsustainable. The root causes of these factors, such as low productivity, demographic changes, and stiff competition to research and develop, are still the threats pertaining to long-term sustainable growth in China. Another risk factor is the future of this sector, which might be influenced by the ongoing tension between China and the United States, especially regarding technology and trade.
In the midst of these difficulties, Alibaba’s strong execution of its business plan, aided by the AI strategy, has made the company the most significant contributor to China’s technological development. The company’s particular success story reflects the larger change in the Chinese tech sector. Companies are now focusing on AI and other new technologies in order to grow and innovate, which in turn drives growth and innovation. This phenomenon could be very far-ranging for the global tech field, hence possibly shifting the equilibrium of power between Chinese and American tech giants.
Even though Alibaba is constantly injecting resources into AI and broadening its technological infrastructure, it remains firmly committed to taking advantage of the burgeoning AI-driven solutions both in China and abroad. The collaboration with Apple on AI-related projects designed for the Chinese market is an indication of Alibaba’s influence and know-how in the field that has grown over time. This relationship, if successful, can then allow Alibaba to create new markets for itself and gain ground as the primary player in the AI field.
Considering the future, Alibaba’s punctuality in AI development, as well as its economic benefit from the successful commercialization of these innovations, will be of utmost importance to keep the current positive trend on track. The implementation of AI across different Alibaba divisions, be it on e-commerce or cloud computing, could potentially lead to the creation of new streams of income. Also, the company will take steps to comply with the strict regulations of China and keep data privacy and security at the proper levels while introducing the AI initiatives.
In summary, Alibaba’s excellent rise and rebrand as China’s latest AI favorite are a clear indication that artificial intelligence is indeed becoming a big factor in shaping the future of the tech industry. Keeping on the move and improving its AI skills will surely give the company an edge to be a key player in the development of Chinese technology and also a possible contender with the Western AI giants on the global scene. These, of course, will become the most decisive months and years, as the next months and years will show us whether Alibaba will be able to keep up the pace and if it will be able to utilize its investments in AI in a way to succeed in the long run and to expand.
