Alibaba CEO Eddie Wu has dismissed concerns of an artificial intelligence bubble, saying the next three years are likely to see strong, sustained growth rather than a market correction.
According to Wu, AI resources will remain in short supply, preventing the kind of oversaturation that typically fuels a bubble.
His remarks came after Alibaba released its fiscal Q2 2026 results, reporting USD 34.6 billion in revenue, a 15% increase after excluding divested businesses. Wu said the company is firmly in an investment phase, focusing on building AI infrastructure and developing consumer-facing platforms designed to scale with rising usage.
Alibaba also highlighted surging demand for cloud-powered AI solutions, noting that enterprise customers across sectors are accelerating adoption.
In response, the company plans to deepen its commitment to AI development—potentially expanding its previously announced USD 53 billion three-year investment plan.
Wu hinted that this investment figure may now be too low, given the rapid pace of AI-driven transformation and the growing appetite for high-performance computing and model training capabilities.
With AI demand far outstripping supply, Alibaba believes the next few years will be defined by aggressive innovation and capacity building—positioning the tech giant at the center of Asia’s fast-growing AI ecosystem.
