The future of artificial intelligence will be won through an integrated full-stack approach that delivers tangible value. Speaking at VivaTech 2026 in Paris, Alibaba Group Chairman Joe Tsai shared his conviction in the technology’s long-term trajectory, pointing to a US$50 trillion total addressable market.

“AI is producing units of human intelligence and productivity, driving at least half of the world’s hundred trillion-dollar GDP,” Tsai said. “The US$50 trillion-dollar opportunity is the TAM of AI, and that’s why we’re all in.”

Capturing this opportunity requires sustained investment at scale. Backed by its core e-commerce engine generating US$25 billion in free cash flow annually, Alibaba pledged in February 2025 to commit over US$53 billion to AI and cloud infrastructure over the next three years.

“In the China context, we’re very underinvested in infrastructure and in the AI supply chain. It behooves all companies in China to step up their investment. We’re actually one of the better-positioned companies out there.”

Full-Stack Strategy: Future-Proofing Where Value Accrues

Navigating the AI boom requires flexibility. Tsai emphasized that Alibaba’s full-stack strategy, spanning proprietary chips and infrastructure, advanced foundation models and the application layer, is essential precisely because no one can predict with certainty where long-term value will accrue. Controlling and optimizing every layer positions the company to adapt as the market evolves.

“Having an integrated, full-stack approach is our core strategy,” Tsai said.

At the center of this strategy sits Qwen, Alibaba’s flagship large language model and one of the most widely used open-source AI models globally. Alibaba is demonstrating the model’s value across its own ecosystem, where AI is being embedded and deployed across its commerce and services ecosystem to upgrade experiences for hundreds of millions of consumers.

All-Layer Progress Wins Enterprise Trust

Alibaba’s deliberate progress across every layer of the technology stack has strengthened market confidence, establishing the company as a trusted partner for global enterprises with complex data needs.

This trust is reflected in Alibaba’s deepening partnerships with global industrial leaders, including BMW, Siemens and Bosch. Through these collaborations, Alibaba Cloud provides the secure, high-performance infrastructure needed to process and train high-quality proprietary data. The resulting models are being applied on the factory floor and in the vehicle, driving breakthroughs in manufacturing optimization and autonomous driving systems.

A Decade of Commitment to Europe

Tsai spoke at VivaTech’s 10th anniversary edition, a milestone for an event where Alibaba has long maintained a strong presence.

Over the past decade, Alibaba has served as a vital commercial bridge for the continent, currently facilitating over EUR 30 billion in annual sales for European products and brands reaching Chinese consumers through its digital marketplaces.

Also this week, Alibaba Cloud announced the launch of its cloud region in France, its third European hub after Germany and the United Kingdom. The expansion addresses accelerating demand from European customers across key sectors for advanced cloud and digital solutions hosted in Europe. A suite of agentic AI services for European markets is set to launch later this year.