Shares have soared this year, but the online retailer's plans for an AI spending spree haven’t gone down so well.

Alibaba Group Holding Ltd.’s U.S.-listed stock fell nearly 7% on Monday after the online retailer said it plans to spend about $53 billion over the next three years on its cloud computing and Artificial Intelligence infrastructure. The spending plan amounts to nearly eight times its most recent quarterly profit of $6.7 billion.

Alibaba Cloud invests $53 billion in artificial intelligence to drive AI infrastructure, cloud computing and LLMs as Alibaba Group ADR stock increases.