Speaking at CNBC’s Converge Live forum in Singapore, Alibaba Group Chairman Joe Tsai reaffirmed the company’s commitment to open-source, and expressed confidence in the company’s largest to date three year investment for building out its AI and cloud infrastructure to capture AI-driven growth.
Open Source to Power AI Development
Tsai emphasized that the proliferation of AI applications will come from open source. When AI models are freely available, innovation isn’t confined to the largest tech giants—anyone can build, customize, and apply AI in ways people haven’t yet imagined.
Tsai also challenged the notion of AI development through the context of geopolitical competition. He believed that the real AI revolution is in open versus closed models, rather than between nations. Open-source AI is a game-changer. When AI models are accessible, small businesses, individuals, and entrepreneurs can innovate, rather than AI being concentrated within a few dominant corporations.
He further emphasized that the focus should not be solely on computing power. Instead, it should be on unleashing creativity, enabling companies of all sizes to create remarkable innovations on top of AI. The true value of AI extends beyond developing the most sophisticated models; it lies in how we apply these models to address real-world challenges, boost productivity, and foster innovation.
AI’s Transformative Opportunity to Enhance Human Expertise
Tsai highlighted AI’s transformative potential to revolutionize productivity. He noted that if just 20% of global labor can be enhanced by AI, we’re looking at a $10 trillion total addressable market—larger than the entire technology sector. While AI can automate routine tasks, he stressed that its true value lies in augmenting human decision-making in fields such as law, equity research, and business strategy.
Tsai also offered his view of the broader development of AGI. He believed that we need to understand the limits of human intelligence before we can define AGI. He pointed out that if we do not know how smart the human brain can be, we cannot accurately measure AI against it.
Strategic Investments
AI is increasingly becoming a core driver of Alibaba’s businesses, particularly in transforming e-commerce. As Tsai explained, AI will not only personalize product recommendations but also curate entire shopping experiences—from anticipating a consumer’s travel needs to ensuring purchases are delivered before their departure.
Demonstrating its long-term commitment and confidence in AI’s development, Alibaba recently announced plans to invest at least RMB 380 billion (approximately US$53 billion) in AI and cloud infrastructure over the next three years—exceeding its total spending in these areas over the past decade. Tsai positioned this investment as essential to meeting growing domestic demand for AI-powered cloud solutions and reinforcing Alibaba’s role as a leading global cloud provider.
Tsai also elaborated that the “combination of private business confidence and excitement about technology development will eventually translate into consumer confidence”.
Thinking Like a Startup to Stay Competitive
Beyond technological innovation, Tsai highlighted the importance of maintaining a startup mentality in today’s competitive market. He offered that to stay competitive, Alibaba must think like a startup—nimble, fast, and humble. Large companies are less agile, but in e-commerce, decisions need to be made in minutes, not days. Our competitors are startups, and we have to match their speed.
By balancing technological advancements with agile execution, Alibaba is positioning itself at the forefront of the next wave of AI transformation. With a focus on cost-effective deployment and open collaboration, the company aims to equip businesses with the tools they need to navigate an increasingly AI-driven world.
