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Alibaba to Restart Hiring Amid Optimism, Cautions Against AI Investment Bubble in the U.S.

Alibaba Group Chairman Joe Tsai announced on Tuesday that the tech giant will resume hiring, fueled by increased confidence following a significant meeting between President Xi Jinping and major Chinese tech entrepreneurs in February. Tsai also expressed concerns about large-scale artificial intelligence (AI) investments in the U.S., suggesting they might signal the start of a bubble.

Tsai praised the rare meeting, which included Alibaba co-founder Jack Ma, marking a shift in Beijing’s approach to the tech sector. A regulatory crackdown on the industry several years ago had slowed growth, reduced investment, and led to layoffs. Tsai believes the meeting sent a clear message to the business community: it was time to reinvest and rehire employees.

After a decline in Alibaba’s workforce over the past 12 quarters, Tsai is optimistic that the company has hit rock bottom and plans to start rebuilding. China’s economy has faced several challenges, including slow growth and a real estate debt crisis, leading to job insecurity and weak consumer sentiment. However, Tsai emphasized that hiring would lead to greater job security and income growth, boosting business and consumer confidence.

Tsai also highlighted the success of DeepSeek, a Chinese startup disrupting the AI sector with affordable models, which has helped restore confidence in China’s tech industry. This success, alongside Alibaba’s significant investments in AI, will likely drive the need for more hiring in the sector.

While Alibaba is investing heavily in AI, Tsai expressed concern about the massive investments happening in the U.S. He referred to large investment figures, such as $500 billion, as unnecessary, suggesting that investments are being made ahead of actual demand. Tsai specifically voiced worries about speculative data center construction, seeing signs of a potential bubble in the U.S. market.

In comparison, Alibaba plans to invest 380 billion yuan ($52 billion) in its cloud computing and AI infrastructure over the next three years. The positive sentiment around China’s tech sector, boosted by Xi’s meeting and the success of companies like DeepSeek, has contributed to a 24% rise in Hong Kong’s Hang Seng Tech Index this year.

China Willing to Share AI Achievements, Vice Premier Says at Paris Summit

At an AI summit held in Paris on Monday, Chinese Vice Premier Zhang Guoqing expressed China’s willingness to collaborate with other nations to promote security and share advancements in artificial intelligence (AI). He emphasized the importance of building “a community with a shared future for mankind,” a concept central to Chinese President Xi Jinping’s foreign diplomatic approach.

Zhang’s comments reflect China’s broader diplomatic goal of strengthening relationships with partner countries and fostering a sense of global unity, particularly in emerging technologies like AI. The vice premier’s remarks underline China’s commitment to contributing to global development while enhancing international cooperation in the AI space.

Chinese Vice Premier Zhang Guoqing to Attend Paris AI Summit

Chinese Vice Premier Zhang Guoqing will visit France from February 10 to 12 as President Xi Jinping’s special representative at the AI Action Summit, the Chinese Foreign Ministry announced on Friday. The summit will bring together representatives from nearly 100 nations to discuss the safe and responsible development of artificial intelligence (AI).

Foreign Ministry spokesperson Lin Jian expressed China’s eagerness to enhance communication and collaboration with all attending nations. “China looks forward to strengthening communication and exchanges with all parties,” Lin said during a regular briefing. He also stated that China aims to build a consensus on AI cooperation and promote the implementation of the United Nations Global Digital Compact by participating in the summit.

The summit is expected to focus on strategies to manage AI development and foster international cooperation in AI technologies. The U.S. delegation, led by Vice President JD Vance, will also be attending, though it will not include technical staff from the AI Safety Institute