Alibaba's $10.2 Billion AI Gamble: Can It Beat DeepSeek?

Alibaba is betting big on artificial intelligence. The Chinese tech giant has committed $10.2 billion to its AI division, but a new competitor is making investors nervous. DeepSeek, a Chinese AI startup, recently released a model that rivals Alibaba's own technology—at a fraction of the cost. The news raised doubts about whether Alibaba's massive spending will pay off. Alibaba's stock, traded under the ticker BABA, has struggled to recover from regulatory crackdowns in recent years. The company hopes AI will drive its next wave of growth. But the pressure is mounting. DeepSeek's low-cost approach suggests that building powerful AI may not require billions in spending—a troubling sign for companies like Alibaba that have invested heavily. Investors now face a key question: Is Alibaba's $10.2 billion AI bet a smart long-term play, or an expensive misstep? The answer may shape the company's future for years to come.