Amazon vs. Alibaba: AI Strategies Divide Crypto Markets

Amazon and Alibaba are taking vastly different approaches to artificial intelligence (AI). The two tech giants are making billion-dollar bets on AI, but they're focusing on opposite aspects.

Amazon is abandoning its in-house AI model development, instead choosing to become a provider of infrastructure. This strategy positions Amazon Web Services (AWS) as a multi-model hosting platform, allowing enterprises to shop around for different models without being locked into a single provider.

The price tag for this pivot is significant, with Amazon planning capital expenditures of $220 billion in 2026. This amount is roughly equivalent to the GDP of Greece and will be used to scale AI infrastructure.

Alibaba, on the other hand, is doubling down on its in-house AI model development. The company established the Alibaba Token Hub as a standalone business group in March 2026, consolidating model development, e-commerce applications, and agent platforms under one roof.