Chinese fintech giant Ant Group disclosed on Monday that it invested a record 23.45 billion yuan ($3.26 billion) in research and development during 2024, marking the fourth consecutive year of increased R&D spending since 2021.
What Happened: The Alibaba Group Holding Ltd. BABA affiliate revealed the figures in its 2024 sustainability report, according to Reuters, highlighting its commitment to technology advancement amid China’s artificial intelligence boom.
Ant Group, formerly known as Ant Financial, operates China’s dominant mobile payments platform, Alipay, and has been rebuilding its operations following regulatory setbacks that derailed its 2020 initial public offering. Chinese regulators halted the company’s planned IPO at the last moment and imposed antitrust measures on domestic tech giants.
The substantial R&D investment comes as the parent company, Alibaba, accelerates its global AI expansion. Alibaba has committed 380 billion yuan ($52 billion) over three years for cloud computing and AI infrastructure development. The company plans to extend its Qwen large language models to overseas data centers by 2025, operating 29 facilities globally, including two in the United States.
See Also: Elon Musk Calls Trump’s Megabill ‘Political Suicide,’ Says ‘It Is Utterly Insane and Destructive,’ Will ‘Destroy Millions of Jobs in America’
Why It Matters: Recent partnerships with Microsoft Corp. MSFT, Siemens AG SIEGY, and Nvidia Corp. NVDA underscore Alibaba’s strategic AI positioning. Benchmark analyst Fawne Jiang identified Alibaba as “a leading beneficiary of accelerated AI adoption in China.”
Ant Group has explored listing its Singapore-registered overseas arm, Ant International, on the Hong Kong stock exchange as it seeks growth opportunities beyond mainland China. The company reported 100 million users for its tap-and-pay service launched in June 2024.
Alibaba shares have surged over 58.05% in the past 12 months as investors recognize the company’s AI potential amid U.S.-China trade relations prospects.
Read Next:
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: THINK A / Shutterstock.com