Morgan Stanley: Alibaba may increase AI investment and continues to view it as China's best AI enabler

AASTOCKS
2025.09.24 09:38

Morgan Stanley released a report stating that Alibaba-W (09988.HK) is expected to increase its global data center electricity consumption by 10 times by 2032 compared to 2022, and may further increase its investment in artificial intelligence. At the same time, the company launched its latest flagship model Qwen3-Max and an upgraded version of the Bai Lian intelligent platform. The firm remains optimistic about Alibaba's position as China's best AI enabler, reiterating a target price of $200 for Alibaba (BABA.US) and maintaining an "Overweight" rating.

The firm attended Alibaba Cloud's Cloud Habitat Conference held in Hangzhou, where Alibaba Cloud CEO Eric Wu emphasized that Token usage doubles every 2 to 3 months, global data center electricity consumption will increase 10 times by 2032 compared to 2022, and future investments will be added to the existing three-year capital expenditure plan of RMB 380 billion. The company's ultimate goal is to evolve from Artificial General Intelligence (AGI) to Artificial Super Intelligence (ASI).

Regarding the launch of Alibaba's flagship model Qwen3-Max, Morgan Stanley pointed out that Qwen3-Max is the largest and most powerful foundational model in the Tongyi Qianwen series, with pre-training data reaching 36 trillion Tokens and total parameters exceeding 1 trillion. It offers both an Instruct version and a Thinking version. The beta version has achieved third place on the Chatbot Arena leaderboard, and the official version is expected to break new ground. Overall performance is reportedly surpassing GPT-5 and Claude Opus 4, ranking among the top three globally

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