Following a positive earnings report, Alibaba's shares rose by as much as 11% in premarket trading, reflecting investor optimism.

Wu made these declarations during a call with investors after Alibaba reported earnings that exceeded analyst expectations.

Alibaba's journey into AGI illustrates the potential applications in various sectors, including e-commerce, healthcare, and finance, where AI can enhance efficiencies and unlock new revenue segments.

Eddie Wu, Alibaba's CEO, has declared the pursuit of Artificial General Intelligence (AGI) as the company's primary objective, marking a significant shift in its strategic focus.

Recently unveiled, Alibaba's Qwen2.5-VL model has outperformed major rivals like OpenAI, Anthropic, and Google in key AI capabilities, excelling in multi-tasking.

In the last quarter, Alibaba's cloud revenue increased by 13% year-over-year, driven by significant growth in AI-related products.

To support this ambition, Alibaba plans substantial investments over the next three years in AI infrastructure, foundational models, and AI-driven business transformations.

Alibaba aims to lead in AGI developments and compete with Western AI giants, despite facing challenges in accessing top-tier AI technology in China.

The company's strategic moves highlight its ambition to redefine technology and position itself at the forefront of AI innovation.

Wu indicated that the demand for infrastructure in the AI era is substantial, prompting Alibaba to plan investments in cloud and AI infrastructure that will surpass its expenditures over the past decade.

The company emphasizes secure and sustainable practices in its AI initiatives, focusing on eco-friendly data centers and carbon footprint reduction.

Despite its progress, Alibaba faces technological barriers due to geopolitical tensions and must address ethical concerns regarding AI's implications on employment and privacy.