Alibaba’s stock experienced a significant surge following the company’s investment in AI startup DeepSeek, which claims to be developing artificial general intelligence (AGI) capabilities. The Chinese tech giant’s shares rose by 7.3% in Hong Kong trading after reports emerged about its participation in a $10 million funding round for DeepSeek. This AI startup has garnered attention for its open-source large language models and claims to be working on AGI development, though the timeline for achieving true AGI remains uncertain. The investment reflects Alibaba’s strategic push into the artificial intelligence sector, competing with other Chinese tech companies like Baidu and Tencent in the race for AI supremacy. DeepSeek has notably developed models that perform competitively with OpenAI’s GPT-4 in certain benchmarks. The market’s positive reaction to this investment highlights investors’ growing interest in AI-focused initiatives, particularly in the competitive Chinese tech landscape. This move is part of Alibaba’s broader strategy to diversify beyond its core e-commerce business and establish itself as a major player in the AI field. The development also underscores the increasing importance of AI investments in driving market valuations and investor sentiment in the tech sector, as companies worldwide compete to secure their positions in the rapidly evolving AI landscape.