Alibaba Group Holding Ltd has formed a 250 million yuan joint venture with China National Nuclear Power to develop nuclear energy solutions for its AI-dedicated data centers. This initiative aims to meet the rising energy demand driven by the rapid expansion of its AI infrastructure. The partnership positions Alibaba as an innovator in clean technology and supports its ambitions to expand digital capacity, potentially boosting its competitiveness in the cloud market and enhancing long-term growth prospects.

Alibaba (BABA) shares have surged recently, driven by investor enthusiasm for its artificial intelligence (AI) initiatives and Chinese government intervention amid a price war. China announced the 'AI+ Manufacturing' action plan, which is expected to boost innovation and the group's competitiveness, strengthening its market position. Additionally, favorable comparisons with Amazon's balanced growth help sustain medium-term appeal for the stock.

In the latest quarter, Alibaba's revenue grew by 5%, driven by a 34% increase in its AI-related cloud services revenue, anchored by its Qwen platform. This trend highlights strong demand for AI services. However, intense e-commerce competition with JD.com and Meituan is squeezing margins, halving net profit. These results reflect profitability challenges despite significant growth potential in the cloud segment.