Alibaba Group, led by CEO Eddie Wu, is undergoing a strategic transformation to become an AI-first company. The company is integrating artificial intelligence across all business units, including e-commerce, cloud, and logistics, with performance evaluations tied to AI-driven growth. Alibaba's AI model, Qwen, featuring 32 billion parameters, is being leveraged to enhance its platforms, while the company is also developing AI-native applications. The strategic shift coincides with a rise in Alibaba's market performance, with shares up 67% this year, as it capitalizes on China's AI spending, projected to reach $500 billion annually by the next decade. The company plans to invest a record $52 billion in capital expenditures over the next three years, focusing on AI and cloud services. Alibaba Cloud, a key growth area, is prioritizing market share expansion with aggressive investments and price cuts. The transformation aligns with broader trends in China's technology sector, where AI-driven innovation is propelling companies like Alibaba and XPeng, which has seen a 128.74% YTD rise, to outperform U.S. peers. The MSCI China index has gained 19% this year, reflecting the region's AI-led growth and investor optimism.