AI’s Uncertain Path Forward: Alibaba’s Three-Year Strategy Faces Investor Skepticism

Bitget App

Trade smarter

Bitget

News

Markets

AI’s Uncertain Path Forward: Alibaba’s Three-Year Strategy Faces Investor Skepticism

Bitget-RWA2025/11/25 21:12

By:Bitget-RWA

- Alibaba CEO Daniel Zhang rejects AI "bubble" fears, predicting sustainable growth for at least three years despite market volatility. - AI sector faces valuation challenges as firms like C3 .ai and Nvidia see sharp stock declines despite strong earnings, with investors shifting to defensive sectors. - Startups like PetVivo AI demonstrate AI's disruptive potential in under-digitized markets, achieving 50–90% cost reductions in veterinary client acquisition via SaaS. - Industry divides persist between Alib

Daniel Zhang, CEO of Alibaba Group Holding Ltd. (BABA), has downplayed fears of an AI "bubble," stating that the industry is set for steady expansion for at least the next three years. His remarks come as AI-related stocks experience heightened volatility, with investors questioning valuations that have surged ahead of many companies' short-term earnings. Zhang's perspective stands in contrast to recent declines in the sector, where

firms such as C3.ai Inc. and Nvidia Corp. have seen significant drops

even after reporting robust financial results.

Concerns about the sustainability of AI company valuations have grown as investors increasingly favor defensive industries like healthcare. For instance,

Nvidia

posted a record-setting $57 billion in revenue for the third quarter, yet

its stock price slipped by 3.15% as investors questioned

whether current market prices accurately represent the sector's long-term business prospects. During the same period, the Nasdaq Composite Index fell by 2.2%, and

Advanced Micro Devices

(AMD) shares dropped almost 8%. Experts point to the lack of agreement on how to assess AI companies' worth, as these firms often command much higher valuations than traditional software businesses.

C3.ai, a company focused solely on AI software, has become a central example of these valuation concerns. The company recently strengthened its collaboration with Microsoft Azure to make enterprise AI adoption easier, but at the same time reported a

19% decrease in revenue year-over-year

along with continued negative cash flow. Leadership changes, including the departure of founder Thomas Siebel as CEO, have added further uncertainty. At the same time, C3.ai's deeper integration with Microsoft Copilot, Fabric, and Azure AI Foundry is intended to streamline AI solutions for large organizations, especially in government and defense sectors

as outlined in the partnership statement

One example, CUDOS Intercloud,

utilizes verified data centers and smart contracts

to deliver affordable GPU resources to developers and researchers. This reflects a broader movement in the industry toward distributed computing, which offers scalability and adaptability while maintaining high performance.

Outside of enterprise AI, startups are carving out unique opportunities. PetVivo AI, Inc. has introduced an AI-powered SaaS platform aimed at the $150 billion pet care industry,

cutting veterinary client acquisition expenses by 50–90%

through automated lead generation and customer engagement. During its beta phase, the platform delivered a median of 47 new clients per practice over six months, with an average acquisition cost of $42.53—significantly less than conventional approaches. PetVivo's achievements underscore AI's ability to revolutionize sectors that have been slow to digitize,

making it a key driver of valuation growth

as it shifts from medical device-based revenues to high-margin SaaS offerings.

Despite these advancements, doubts remain. While Alibaba expresses optimism about AI's future, some analysts continue to urge caution, emphasizing the importance of tangible proof of lasting profitability. As the industry faces ongoing valuation challenges and operational obstacles, the rivalry between established cloud giants and decentralized solutions is expected to influence the next stage of AI evolution

according to industry analysts

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops

Lock your assets and earn 10%+ APR

Lock now!

- Crypto markets are shaped by behavioral finance, where retail investors drive volatility through FOMO, herd behavior, and overconfidence. - The PENGU token exemplifies this dynamic, surging 480% in July 2025 but plummeting 28.5% by October due to emotional trading cycles. - Social media amplifies emotional contagion, with traders checking prices 14.5 times daily, while financial literacy mitigates bias susceptibility. - Personality traits like neuroticism increase cognitive biases, and speculative narrat

Bitget-RWA•2025/11/27 14:16

The Psychological Factors Influencing Retail Investors’ Actions in Cryptocurrency Markets

Bitcoin News Today: Bitcoin's Unstable Holiday Periods Hide Average Gains of 6%

- Bitcoin's Thanksgiving-to-Christmas performance shows equal odds of rising or falling, with a 6% average seasonal return despite volatility. - Historical extremes include a 50% 2020 rally and 2022's 3.62% drop post-FTX collapse, amid a $2.49-to-$91,600 long-term surge since 2011. - 2025's $91,600 price reflects ongoing recovery from 2024's $95,531 peak, with institutional crypto adoption and macroeconomic factors shaping future trajectories. - Analysts advise dollar-cost averaging for retail investors, w

Bitget-RWA•2025/11/27 13:56

Bitcoin News Today: Bitcoin's Unstable Holiday Periods Hide Average Gains of 6%

Australia Strikes a Balance Between Fostering Crypto Innovation and Safeguarding Investors with Updated Regulations

- Australia introduces 2025 Digital Assets Framework Bill to regulate crypto platforms under ASIC, creating "digital asset platform" and "tokenized custody platform" licenses. - The framework mandates custody standards, transparency requirements, and lighter regulations for small operators (<$5k per customer) to balance innovation with investor protection. - Global alignment with UAE and EU crypto regulations is emphasized, while addressing risks from past failures like FTX through stricter enforcement and

Bitget-RWA•2025/11/27 13:56

Australia Strikes a Balance Between Fostering Crypto Innovation and Safeguarding Investors with Updated Regulations

PENGU Token's Latest Price Fluctuations and Blockchain Indicators: An Analytical Perspective on Technical Factors and Institutional Activity

- PENGU token's recent volatility and on-chain activity spark debate over institutional involvement in the crypto market. - Technical indicators show conflicting signals: overbought RSI vs. positive MACD/OBV momentum since November 2025. - Whale accumulation and Solana integration suggest strategic buying, while team wallet outflows highlight market uncertainty. - Social media sentiment drives short-term price swings, but structural risks like tokenomics and regulatory ambiguity persist. - Institutional ad

Bitget-RWA•2025/11/27 13:56