Alibaba's chairman expressed concerns about a potential bubble forming as companies rush to construct data centers to meet the growing demand for artificial intelligence tools. He warned that some firms, like Meta Platforms and Microsoft, are building these centers without sufficient future demand justification. The significant capital expenditures made by dominant tech firms in the US, such as Microsoft, Amazon, Google, and Meta, to enhance their AI capabilities have raised questions about the need for such massive spending. The international arena is also witnessing a surge in data center construction, with investment funds and AI competitors investing in real estate and hardware. Despite Alibaba's substantial investment in AI development, the chairman cautioned against indiscriminate data center construction without solid uptake agreements. He questioned the necessity of the staggering amounts being discussed and suggested that companies might be investing ahead of currently visible demand projections. This trend has led some US investors to question the need for such extensive capital expenditures, as cheaper AI models from China have emerged, causing a decrease in enthusiasm for AI and impacting the stock market, including companies like Nvidia.