Alibaba Forms Nuclear Power Joint Venture to Fuel AI Data Center Expansion
Alibaba Group has taken a decisive step toward securing its AI future, forming a 250 million yuan ($35.9 million) joint venture with China National Nuclear Power Co. The partnership addresses the critical electricity demands of next-generation data centers, where power reliability outweighs cost considerations.
The e-commerce giant's $53 billion AI investment now appears strategically prescient. Nuclear partnerships are becoming table stakes for tech firms - Meta and Microsoft have already inked similar deals to power their machine learning infrastructure. Wall Street remains bullish, maintaining a Strong Buy rating with a $203.09 price target.
Registration documents reveal energy generation as the core focus, though operational specifics remain guarded. This MOVE underscores a broader industry shift: as AI models grow exponentially more power-hungry, traditional energy grids can't compete with dedicated nuclear solutions.
