(Photo: Alibaba Group’s Website)
（Singapore, 24.09.2025）In a surprising and highly anticipated move, Cathie Wood’s Ark Investment Management has made its first significant investment in Chinese e-commerce giant Alibaba Group Holding Ltd. in four years. The bold reinvestment, valued at approximately $16.3 million (S$20.93 million), signals a potential shift in Wood’s long-standing cautious stance on Chinese tech stocks and underscores a growing optimism around Alibaba’s aggressive pivot into the artificial intelligence (AI) sector.
The news comes as Alibaba’s stock has surged, nearly doubling year-to-date and reaching its highest level since late 2021. This rally is driven by a renewed investor confidence in the company’s strategic focus on AI, which many believe will be the key to reinvigorating its growth amidst fierce competition in its core e-commerce business.
Wood, known for her high-conviction bets on disruptive technologies, has a history with Alibaba. Ark’s initial investments in the company date back to its 2014 IPO. However, the firm completely divested its position in September 2021, at the height of a sweeping regulatory crackdown by the Chinese government that roiled the tech sector. This latest move marks a significant return to a market Ark has largely avoided for years, though it did begin building a smaller position in Chinese search engine Baidu Inc. earlier this year.
The timing of Ark’s investment is no coincidence. It follows a series of major announcements from Alibaba’s top leadership that have captured the attention of the global tech community.
At its recent annual Apsara Conference, Alibaba Group CEO Eddie Wu revealed ambitious plans to significantly increase spending on AI infrastructure, promising to go “further on top of the RMB 380 billion (S$68.57 billion) baseline” that the company had previously committed. This aggressive capital expenditure is a direct response to the “unprecedented” pace of AI development and the surging industry demand for AI-related infrastructure.
Wu’s vision for Alibaba extends far beyond its roots as an e-commerce pioneer. He aims to transform the company into a “full-stack AI service provider,” offering a comprehensive suite of products from “model-as-a-service” to “platform-as-a-service.” This strategic shift is already bearing fruit. In its most recent quarter, Alibaba’s Cloud Intelligence division, powered by its AI initiatives, saw a remarkable 26% jump in sales, making it the fastest-growing business unit in the group. This impressive performance has been a key driver in the company’s stock rally.
From AGI to ASI: Redefining the Future of Technology
A major highlight of the conference was the official unveiling of Alibaba’s new Qwen3-Max large language model. Described as the “largest and most capable” model developed by the company to date, Qwen3-Max boasts over a trillion parameters and demonstrates industry-leading performance in complex tasks like code generation and autonomous agent capabilities. The model’s preview version has already made waves, ranking third on the prestigious LMArena text leaderboard, even surpassing some versions of rivals’ models.
Wu’s keynote speech delved into a futuristic vision that went beyond current AI capabilities, discussing the evolution of Artificial General Intelligence (AGI) into Artificial Superintelligence (ASI). He posited that AGI, while a major breakthrough, is merely the beginning. The ultimate goal, he argued, is ASI, a stage where machines surpass human intelligence and are capable of self-iteration and evolution.
He believes that large models will serve as the “next-generation operating system” for this new era. In this future, nearly all tools will be connected to large models, and users will be able to create an “infinite number of applications using natural language.” Wu stated that “large models will be the next-generation operating system, and AI Cloud will be the next-generation computer,” a bold prediction that suggests the computing world will be dominated by a handful of global “super cloud computing platforms.”
The Bullish Bet on AI
Cathie Wood’s decision to reinvest in Alibaba is a strong endorsement of this vision. By acquiring shares now, Ark is betting that Alibaba’s massive investment in AI will pay off and that the company is well-positioned to become a global leader in this transformative technology.
While Wood’s flagship Ark Innovation fund (ARKK) has faced recent challenges, including significant outflows and underperformance over a five-year period, its 49% return this year is a testament to the firm’s continued ability to spot high-growth opportunities. The addition of Alibaba to its portfolio, alongside its other investments in companies like BYD Co. and JD Logistics, reinforces its focus on the burgeoning AI and technology sectors, particularly in China.
