Joe Tsai, the chairman of Alibaba Group, has expressed his views on investing in AI infrastructure, a sector in which the company itself has invested heavily. However, he believes that several technology companies in the United States are investing so heavily in AI that it is concerning.
Currently, the talk is all about the staggering numbers being poured into AI investments, reaching around $500 billion or even more. Tsai believes that this level of investment may be premature, happening before real demand has materialized. Investing in something without knowing if there will be a customer base could potentially lead to a bubble.
Alibaba’s AI investment plan is set at a minimum of 3.8 trillion yuan, roughly $5.2 trillion, over the next three years. Tsai also mentioned his participation in a meeting with President Xi Jinping, which he sees as a positive signal of government support for technology companies. This support has instilled confidence in the company, leading them to prepare to rehire employees after significant layoffs.
Source: Reuters
TLDR: Joe Tsai from Alibaba Group questions the massive AI investments in the US, emphasizing the importance of real demand before pouring huge sums into the sector. Alibaba’s own AI investment plan stands at $5.2 trillion over the next three years, with Tsai highlighting the positive signal of government support for tech companies.
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