Alibaba's Bold AI Investment Sparks Stock Surge Amid GameStop CEO's $1B Stake Boost

Alibaba Group's U.S.-listed shares are experiencing a notable rise in premarket trading, fueled by GameStop CEO Ryan Cohen's reported increase in his stake and the company's aggressive plans to enhance its artificial intelligence (AI) capabilities.

Key Highlights

• Alibaba's stock gains approximately 4% premarket following news of Cohen's expanded investment and the company's AI spending strategy.
• CEO Eddie Wu emphasized during the recent earnings call that Alibaba intends to make substantial investments in AI infrastructure over the next three years, surpassing the expenditures of the past decade.
• Ryan Cohen, dubbed the 'meme-stock king,' has reportedly increased his personal Alibaba holdings to about 7 million shares, valued at roughly $1 billion.

Alibaba's latest quarterly earnings exceeded expectations, driven by accelerated growth in core business segments powered by AI-driven initiatives. The company has achieved six consecutive quarters of triple-digit growth in AI-related product revenue.

During the earnings call, CEO Eddie Wu stated, "Our commitment to investing in cloud and AI infrastructure over the upcoming three years will outpace all prior investments made in the last ten years."

GameStop CEO Ryan Cohen's Significant Alibaba Investment

According to The Wall Street Journal, Cohen's increased stake in Alibaba represents a strategic move, reflecting confidence in the company's AI-driven growth trajectory. Cohen, who became GameStop's CEO in 2023 and co-founded Chewy, is known for his influential presence in the market.

While Investopedia has not independently verified these details, the market response has been overwhelmingly positive, with Alibaba's shares reaching a three-year peak and an 85% increase over the past year.

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