Alibaba's Home Province Launches $138 Billion AI Push To Double China's Industry Output By 2027

Alibaba Group Holding (NYSE:BABA) and DeepSeek’s home province Zhejiang introduced a comprehensive policy package to accelerate artificial intelligence (AI) research, industrial growth, and talent acquisition.

Major companies in the AI supply chain, including those responsible for large language models, cloud computing, and semiconductors, could potentially generate combined operating revenues of over 1 trillion yuan ($138.6 billion) by 2027, nearly double the current production value of China’s AI industry, which last year saw total output worth 570 billion yuan, SCMP reported on Wednesday, citing official data.

The strategy resonated with Beijing’s call for technological self-reliance.

Financial support includes attracting more than 10 billion yuan in venture capital to invest in AI, especially subsidizing start-ups.

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The policy takes effect on May 31 and will remain valid through 2027.

The Guangdong government announced subsidies for the AI and robotics sectors in April. The Guangdong city of Shenzhen is home to tech firms, including Tencent Holdings (OTC:TCEHY) and Huawei Technologies.

Alibaba is considered the tech barometer of China. The stock surged over 46% year-to-date.

Alibaba reported its fiscal fourth-quarter revenue growth of 7% to $32.58 billion, missing the analyst consensus estimate of $33.08 billion. It clocked an adjusted earnings per ADS of $1.73, which beat the analyst consensus estimate of $1.48. Cloud Intelligence Group revenue grew by 18% to $4.15 billion.

Benchmark analyst Fawne Jiang continues to view Alibaba as a leading beneficiary of accelerated AI adoption in China and a top structural player in the sector.

Price Action: BABA shares traded lower by 0.75% to $124.22 at the last check on Wednesday.

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