Alibaba Unveils AI Stack Overhaul as Benchmark Reaffirms Buy Rating
The tech giant’s latest infrastructure update coincides with strong enterprise demand for AI services, prompting Benchmark to maintain its $220 price objective.
Alibaba Group Holding Limited has announced a comprehensive overhaul of its artificial intelligence infrastructure, unveiled at the Alibaba Cloud Summit on 20 May. The strategic update encompasses cloud infrastructure, model-based services, AI processors, and foundation models, all designed to assist clients in developing and deploying AI agents.
Central to this announcement is Qwen3.7-Max, the company’s latest large language model. Optimised for agentic programming, intricate reasoning, and long-term task performance, the model is tailored for platforms such as OpenClaw, Hermes Agent, and Claude Code. Alibaba stated that Qwen3.7-Max can handle over 1,000 tool calls without performance degradation for up to 35 hours.
The technological expansion aligns with robust financial indicators from the company’s fourth quarter of fiscal 2026. While results came in below consensus, they were generally consistent with forecasts. Notably, AI-related revenue grew at triple digits driven by strong enterprise demand, and external AI cloud revenue surged to approximately 40 per cent year-on-year.
Market sentiment remains positive, with Benchmark reaffirming its Buy rating on Alibaba on 14 May. The firm maintained a $220 price objective, citing the triple-digit growth in AI-related revenue as a key factor in its outlook.
Alibaba, founded by Chung Tsai and Yun Ma in June 1999, operates as a technology infrastructure and marketing solutions provider within the People’s Republic of China and internationally. The company is headquartered in Causeway Bay, Hong Kong.
