Alibaba Group has secured a significant portion of a massive USD 35 billion order for Nvidia chips, specifically over 3 million RTX PRO 5500 graphics cards designed for export-compliant AI use. This strategic procurement underscores Alibaba's aggressive expansion in cloud infrastructure and its commitment to building the hardware foundation necessary for its generative AI initiatives. However, this heavy capital expenditure comes with immediate financial pressure. Adalytica reported that Alibaba posted negative free cash flow of RMB 44.67 billion in the most recent quarter, driven largely by these infrastructure spending requirements. The company is currently weighing the long-term growth opportunity presented by AI against the near-term burden on its profitability and cash reserves. Market sentiment reflects this tension between investment and valuation. Alibaba's stock trades at EUR 89.35, sitting approximately 45.40 percent below its 52-week high of USD 182.50. Analysts like Jefferies maintain a buy rating with a price target of USD 192.00, suggesting that the market is currently discounting the stock while investors digest the implications of these substantial AI investments.