$BABA: AI Spend Surges with Nvidia Pact — But $433.5M Settlement Still Shadows

Court: S.D. New York

Case: 1:20-cv-09568

Alibaba BABA stock jumped 8%, hitting its highest level in nearly four years after CEO Eddie Wu announced plans to boost AI spending beyond its initial $53B three-year commitment. The company also unveiled its multimodal Qwen3-Omni model and signed a new software deal with Nvidia (NVDA) to strengthen robotics and self-driving development. Cloud expansion into Brazil, France, and the Netherlands underscores Alibaba’s ambition to be a global “full-stack” AI provider. Yet, despite this rally, the company still faces the overhang of a $433.5M settlement tied to Ant Group’s failed IPO.

• +8% stock surge, reaching four-year highs.
• AI investment raised above prior $53B pledge.
• Qwen3-Omni launched, handling text, images, audio, and video.
• Nvidia pact signed for AI robotics and self-driving.
• Cloud unit +26% YoY, expanding into Europe and Brazil.
• $433.5M Ant Group settlement remains an investor concern.

Timeline Overview

• Nov 5, 2019 — Regulators warn Alibaba on compliance.
• Nov 2, 2020 — Ant executives summoned by regulators.
• Nov 3, 2020 — Ant’s IPO suspended; BABA fell 8%.
• Dec 23–24, 2020 — Antitrust probe launched; BABA dropped 13%.
• Apr 22, 2022 — Investors filed suit against Alibaba.
• Sept 2025 — Company agreed to $433.5M settlement.

Allegations Include

• Misled investors about Ant Group’s regulatory readiness.
• Concealed risks from high-risk consumer lending practices.
• Failed to disclose likelihood of IPO suspension and antitrust probe.

Investor Update

The $433.5M settlement resolves claims tied to Ant Group’s halted IPO and regulatory fallout. While it clears one major lawsuit, it underscores ongoing regulatory and credibility risks that continue to weigh on Alibaba even amid strong AI-driven momentum.

You can check more information about it HERE.