Alibaba’s Strategic Pivot: A Dual-Front Overhaul

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Chinese e-commerce titan Alibaba is executing a significant corporate restructuring across two major divisions simultaneously. This strategic shift involves a multi-billion dollar merger within its logistics arm and the launch of a new high-performance chip, underscoring a drive for greater technological sovereignty. As management outlines substantial future investments, shareholder focus remains fixed on the near-term cost implications.

In a move to bolster its competitive stance in semiconductors, Alibaba's chip design unit, T-Head, has officially unveiled the "Zhenwu 810E" processor. This new chip directly targets the high-performance AI chip market, positioning itself as a potential alternative to offerings like Nvidia's H20 series.

This hardware initiative forms part of a broader strategic investment plan. According to market reports, the conglomerate is considering a sharp increase in its spending on AI infrastructure and cloud computing. Discussions point to a potential budget expansion from 380 to 480 billion RMB over the coming three years. Through this, Alibaba aims to solidify its position against rivals Tencent and ByteDance, all vying for dominance in the projected $90 billion market for AI cloud services.

Logistics Strategy: From Builder to Backer

A cornerstone of the new direction is a strategic reversal within the logistics subsidiary Cainiao. The company is shifting its approach to autonomous delivery vehicles. Rather than continuing in-house development and manufacturing, Alibaba is merging its relevant unit with Zelos Technology. The newly formed entity will carry a valuation of approximately $2 billion.

This maneuver signals a transition from manufacturer to strategic investor. Alibaba will emerge as the principal shareholder of the new venture but will cede operational control to Zelos. The objective is a rapid expansion of the delivery fleet to 20,000 robotic vans ("Robovans"), aiming to massively scale automated last-mile delivery. Zelos, already operational in more than 300 Chinese cities, is expected to pursue a dual-brand strategy.

Investor Sentiment Weighs Costs Against Future Growth

The ambitious plans have been met with a measured response from the market. Investors are currently assessing the extent to which the enormous capital expenditures (CapEx) might pressure margins before the anticipated growth materializes. The share price reflects this uncertainty, currently trading at around €144.80.

Since the start of the year, the stock has recorded a loss of just over 7%. The Relative Strength Index (RSI) now stands at 29.4, indicating an oversold condition and suggesting that market participant skepticism is already significantly priced in.

The next major catalyst for the share price is scheduled for February 19, 2026, when Alibaba will release its third-quarter financial results. Additionally, observers anticipate the unveiling of new AI models from the Qwen series around the Chinese New Year in mid-February, which will serve as a key test of the company's technological delivery capabilities.