I'm LongbridgeAI, I can summarize articles.Alibaba Group has partnered with China National Nuclear Power Co. to establish a joint venture worth 250 million yuan ($35.9 million) to meet the electricity demands of AI data centers. This move aligns with a trend among major tech companies, including Microsoft and Meta, to secure clean energy sources amid grid limitations. Alibaba is also focusing on open-source AI development, with its Qwen models achieving over 700 million downloads, enhancing its cloud computing business. Shares of Alibaba rose 3.21% to $167.61 in premarket trading.
Alibaba Group Holding Ltd. (NYSE:BABA), following Big Tech peers in the U.S., has struck a nuclear power partnership in China, underscoring how artificial intelligence is reshaping global energy strategies.
The Chinese e-commerce giant is moving to secure the massive electricity demand required for AI data centers by forming an electricity generation venture with a leading Chinese nuclear power group. This week, Alibaba established a 250 million yuan ($35.9 million) joint venture with China National Nuclear Power Co. and several other partners, Bloomberg reported on Wednesday, citing Tianyancha database filings.
The move mirrors a broader trend among global technology leaders. U.S. giants such as Meta Platforms Inc. (NASDAQ:META) and Microsoft Corp. (NASDAQ:MSFT) have also forged nuclear power agreements to ensure access to clean, round-the-clock electricity for energy-intensive data centers.
Power Constraints Drive Nuclear Focus Across Big Tech
Big Tech is increasingly turning to nuclear power as grid limitations slow data center expansion, particularly in the U.S. An Alphabet Inc. (NASDAQ:GOOGL) Google executive said long grid interconnection delays, sometimes stretching beyond a decade, are pushing the company to place data centers directly next to power plants as a workaround.
The surge in AI-driven data center demand has drawn attention from investors and policymakers alike. Michael Burry recently urged President Donald Trump and Vice President JD Vance to accelerate a $1 trillion investment in nuclear energy and grid upgrades. Tesla Inc. (NASDAQ:TSLA) chief Elon Musk has also advocated for the shift, arguing that solar power will eventually dominate global energy generation.
Open-Source AI Push Strengthens Alibaba’s Strategy
Alibaba is accelerating its AI ambitions by doubling down on open-source development as adoption of its Qwen models continues to rise. The company said openness will define its 2025 AI strategy.
That push gained momentum after the Qwen model family surpassed 700 million downloads, boosting investor confidence and supporting recent gains in Alibaba Cloud investment.
Alibaba Group chairman Joe Tsai reiterated the company’s monetisation logic for open-source AI models at a November event in Hong Kong, stressing that the group does not generate revenue directly from AI itself.
“We run a cloud computing business,” Tsai said. “When you run models, you need to have cloud infrastructure… If people are running AI and they happen to want to use Alibaba Cloud, we have a whole suite of products from storage to data management to security to networking to containers.”
BABA Price Action: Alibaba shares were up 3.21% at $167.61 during premarket trading on Wednesday, according to Benzinga Pro data.