Alibaba’s Nuclear-Backed Power Deal for AI Data Centers Might Change The Case For Investing In Alibaba Group Holding (BABA)
Alibaba Group Holding has formed a 250 million yuan joint venture with China National Nuclear Power to secure stable, low-carbon electricity for its expanding AI data centers, highlighting the growing link between AI growth and energy infrastructure. While this move reinforces Alibaba's commitment to AI, its financial impact in the near term is modest compared to other factors like earnings volatility and regulatory risks. Despite the strategic importance of this energy deal, the company's shares might still trade above their fair value, indicating a complex investment narrative for Alibaba.
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