Better Stock to Buy Now: Alibaba vs CoreWeave Stock

Investors are watching two very different companies that both stand at the center of global technology trends. Alibaba, one of China’s largest e-commerce and cloud providers, is accelerating its push into artificial intelligence. Just last week, the company introduced Qwen3-Max, a large language model with more than one trillion parameters, signaling its intent to compete with global leaders in the AI space.

On the other side is CoreWeave, a U.S. cloud infrastructure provider that has built its business around supplying GPU power for AI companies. Since its March 2025 IPO, CoreWeave has secured major contracts, including a deal with OpenAI valued at up to 6.5 billion dollars.

This comparison matters because both firms operate in markets shaped by the growing demand for AI, though their paths are strikingly different. One relies on established scale, while the other focuses on rapid expansion.

Company Profiles & Business Models

Alibaba is one of China’s largest technology firms, best known for its dominance in e-commerce through platforms like Taobao and Tmall. These sites remain the backbone of its revenue, supported by a broad ecosystem that includes logistics, digital payments, and advertising services. In addition, Alibaba has expanded internationally with Lazada in Southeast Asia and other ventures abroad.

Beyond commerce, the company operates Alibaba Cloud, the leading cloud provider in China, which has become a key growth driver as enterprises and governments migrate services online. Recently, the firm has been redirecting significant resources toward artificial intelligence and advanced computing, aiming to reinforce its position in both domestic and global markets.

CoreWeave, in contrast, is a newer but rapidly growing player focused almost entirely on cloud infrastructure for artificial intelligence. The company specializes in providing GPU computing power, a critical resource for training and running large AI models. Its business model revolves around building and operating data centers that rent capacity to AI firms and enterprises.

Unlike traditional cloud companies that serve broad markets, CoreWeave targets high-performance computing users, particularly those in AI research and deployment. The company has strengthened its position through acquisitions such as OpenPipe and Weights & Biases, aiming to expand its software and services alongside infrastructure. CoreWeave’s growth has been driven by long-term contracts, most notably with OpenAI, which give the firm a predictable revenue pipeline. However, this focus also leaves it more exposed to shifts in demand from a limited set of large customers.

Recent Performance

Alibaba has made several high-profile moves that reinforce its AI ambitions. On September 24, 2025, the company launched Qwen3-Max, a language model with more than one trillion parameters, and claimed it outperforms rivals in tasks like coding and autonomous agent operation.

At the same time, Alibaba reaffirmed its commitment to AI and cloud infrastructure by pledging to invest 380 billion yuan (approx. US $53.4 billion) over three years. Its stock reacted sharply: U.S.-listed shares jumped about 8 percent, and its Hong Kong shares rose about 9 percent. That rally was helped by renewed interest from institutional investors.

Recent earnings numbers of Alibaba

CoreWeave, meanwhile, continues to build momentum through large infrastructure contracts and strategic acquisitions. On September 25, 2025, the company announced an expanded contract with OpenAI worth up to US $6.5 billion, bringing the total value of their collaboration this year to approximately $22.4 billion. This deal comes after earlier agreements in March and May, highlighting the deepening relationship between CoreWeave and OpenAI. The new contract is intended to support OpenAI’s “Stargate” infrastructure program, which aims to scale computational capacity.

CoreWeave is also active on the acquisition front. It recently agreed to acquire OpenPipe, a startup focused on tools for training AI agents. That move complements its existing infrastructure business by strengthening its software layer. On the downside, the company has substantial capital expenditures and carries risks related to its dependence on a few large customers.

These developments show that Alibaba is leveraging its scale and brand strength to move deeper into AI, while CoreWeave is betting heavily on raw infrastructure demand and large contracts to fuel its growth.

Comparative Analysis & Valuation Considerations

Alibaba and CoreWeave present investors with contrasting profiles. Alibaba is a diversified giant with strong positions in e-commerce and digital services, providing steady cash flow that funds its cloud and AI expansion. Its scale offers resilience during economic shifts, though the company remains vulnerable to regulatory actions in China and slowing domestic consumption.

Analysts note that Alibaba’s shares continue to trade at relatively low earnings multiples compared with global peers, reflecting both caution about China’s economy and skepticism over the pace of growth in its cloud unit. CoreWeave, in contrast, is valued as a high-growth infrastructure play. The company has reported surging revenue, including a 207 percent year-over-year increase in the second quarter of 2025, and disclosed a backlog of $30.1 billion in contracted business. However, the business model is highly capital intensive, requiring continuous spending on data centers and GPU supply.

It also faces customer concentration risk, with a significant share of revenue tied to OpenAI contracts. Valuation for CoreWeave reflects these mixed factors. Its shares have been volatile since the IPO, climbing on contract wins but falling sharply on concerns about debt and the scale of its capital commitments. Alibaba, though less volatile, struggles to regain investor confidence despite its size and profitability. The comparison highlights a choice between the relative safety of scale and the higher but riskier growth profile of a focused AI infrastructure firm.

Conclusion

Alibaba and CoreWeave stand at very different stages of maturity, and the choice between them depends largely on investor priorities. Alibaba offers the stability of a diversified business model, with strong e-commerce operations that continue to generate cash and fund new ventures. Its push into artificial intelligence, including the launch of Qwen3-Max and significant investment commitments, demonstrates that it is serious about expanding beyond retail and logistics.

For investors seeking exposure to AI within a more established and financially solid company, Alibaba remains a credible option, though risks tied to China’s economy and regulatory environment should not be overlooked.

CoreWeave, meanwhile, provides direct exposure to the infrastructure that powers modern AI systems. Its rapid revenue growth and expanding contracts with OpenAI give it strong momentum, but these same factors introduce heavy dependence on a limited customer base and rising debt levels.

The stock may suit those willing to tolerate volatility in exchange for potential high returns. In summary, Alibaba appears better suited for cautious investors seeking balanced growth, while CoreWeave is a higher-risk choice for those prioritizing AI-focused expansion.