Alibaba’s Leadership Takes Direct Control of AI Strategy Amid Executive Departures

Facing internal instability and a challenging market, Alibaba Group has initiated a significant strategic pivot, placing its artificial intelligence development under the direct command of its top executives. This move comes as a direct response to the departure of a key AI division head and amid a sustained sell-off in the company’s shares.

Executive Shake-Up Triggers Strategic Centralization

The Chinese e-commerce giant announced the formation of a new, high-level task force on Thursday, designed to accelerate the advancement of its foundational AI models. The initiative will be overseen personally by Group CEO Eddie Wu, with direct involvement from Group CTO Wu Zeming and Cloud CTO Zhou Jingren. In an internal memo, the company confirmed it would allocate increased resources to its AI ambitions.

This organizational restructuring was triggered by the resignation of Lin Junyang, the former head of Alibaba’s crucial Qwen AI unit. His exit represents the third high-profile departure from the Qwen project leadership this year alone, raising concerns about continuity within the AI teams. The newly established task force aims to centralize control over the AI roadmap and stabilize the division. Zhou Jingren will continue to lead the Tongyi Laboratory, Alibaba’s core research arm.

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Mounting Pressures Weigh on Share Performance

These internal changes are unfolding against a backdrop of considerable external pressure. Alibaba’s stock has been under notable selling pressure, recently completing a seven-day losing streak. Closing at 112.40 euros on Thursday, the shares have shed nearly 8% over the past week.

Beyond personnel volatility, macroeconomic concerns are dampening investor sentiment. China has set its GDP growth target for 2026 at its lowest level in years. This development has weighed broadly on US-listed Chinese equities, as the market anticipates a potential slowdown in domestic economic activity.

By embedding its most senior leaders directly into the AI development process, Alibaba is signaling that artificial intelligence is now a top-tier corporate priority. The restructured approach must now deliver tangible progress swiftly to maintain the firm’s competitiveness in the global technology sector and rebuild investor confidence in its future technological capabilities.