Alibaba said the total investment amount exceeds the company's spending in AI and cloud computing over the past decade.

Alibaba Group Holding Ltd.’s U.S.-listed stock fell nearly 7% on Monday after the online retailer said it plans to spend about $53 billion over the next three years on its cloud computing and Artificial Intelligence infrastructure. The spending plan amounts to nearly eight times its most recent quarterly profit of $6.7 billion.

Chinese tech giant Alibaba said Monday it will spend more than $50 billion on artificial intelligence (AI) and cloud computing over the next three years, a week after co-founder Jack Ma was seen meeting President Xi Jinping.

Alibaba Group has highlighted that it has been focusing more on these two sectors lately, with plans to integrate artificial intelligence across several of its divisions such as e-commerce and consumer applications.

The Alibaba Group is going all in on AI as it announces plans to invest at least $53 billion over the next three years.

Chinese tech giant Alibaba said Monday it will spend more than $50 billion on artificial intelligence and cloud computing over the next three years, a week after co-founder Jack Ma was seen meeting President Xi Jinping.

The Chinese technology giant first mentioned the plan last week when it reported results but didn’t provide a specific figure.