Alibaba CEO Takes Direct Control of New AI Business Unit Token Foundry

Alibaba Doubles Down on AI With the Launch of Token Foundry

In a move that signals just how seriously Alibaba Group is taking the artificial intelligence race, the Chinese e-commerce and cloud computing giant has established a bold new business unit called Token Foundry. Led directly by CEO Eddie Wu, Token Foundry represents one of the most significant structural shifts in Alibaba's recent history — and a clear declaration that AI is no longer just a feature of the business, but the business itself.

The announcement, first reported by Seeking Alpha on June 8, 2025, marks a pivotal moment in Alibaba's ongoing corporate reorganization and positions the company as a serious contender in the global AI infrastructure and agent economy.

What Is Token Foundry?

Token Foundry is Alibaba's newly formed business unit designed to consolidate and supercharge its artificial intelligence capabilities under a single, CEO-led roof. The unit brings together two of Alibaba's existing divisions — Tongyi Lab and the Future Life business unit — and will operate under the company's recently established Alibaba Token Hub.

Rather than treating AI as one of many initiatives scattered across the organization, Alibaba is centralizing its most ambitious AI efforts into a cohesive structure. Token Foundry is expected to focus on developing AI at a foundational level, with particular emphasis on the creation, management, and deployment of AI tokens — the computational building blocks that underpin large language models and autonomous AI agents.

The Role of Alibaba Token Hub

Token Foundry does not stand alone. It operates within the broader framework of Alibaba Token Hub, a parent structure that serves as the company's command center for all things AI. According to reports, Alibaba Token Hub is responsible for the creation, delivery, and application of AI tokens, and also oversees several key products and services, including:

• Alibaba's model-as-a-service (MaaS) offering, which allows businesses to access and deploy powerful AI models without building infrastructure from scratch
• The Qwen application, Alibaba's flagship large language model product that has gained significant traction in both consumer and enterprise markets
• A growing suite of enterprise AI products designed to help businesses automate workflows, improve decision-making, and drive operational efficiency

By placing Token Foundry within this ecosystem, Alibaba ensures that its foundational AI research and development is directly connected to commercial applications and revenue-generating products — a critical alignment that many tech companies struggle to maintain.

Eddie Wu Steps Into the AI Spotlight

Perhaps the most telling aspect of this reorganization is who is in charge. Eddie Wu, Alibaba Group's chief executive officer, will personally lead Token Foundry. This is not a delegation to a division head or a newly appointed AI czar — the CEO himself is taking the wheel.

This kind of top-down ownership sends a powerful message both internally and externally: AI is Alibaba's number one strategic priority, and it demands the attention of the company's highest leadership. Wu's direct involvement also ensures faster decision-making, cleaner accountability, and stronger alignment between Token Foundry's work and the company's overall corporate vision.

Wu has been vocal about AI's central role in Alibaba's future. During a May 2025 earnings call, he outlined an ambitious trajectory for the company's AI-related revenues and made clear that Alibaba is willing to make substantial investments in AI infrastructure, even at the cost of short-term profitability, to secure long-term leadership in the space.

AI Revenue Is Already Surging

The financial case for Alibaba's AI bet is already taking shape. According to Wu's statements during the May earnings call, AI-related product revenue now accounts for approximately 30% of the revenue generated by Alibaba's Cloud Intelligence Group. That figure alone is impressive — but Wu went further, projecting that AI revenue will account for more than 50% of Cloud Intelligence Group revenue within approximately one year.

That kind of growth trajectory, if realized, would represent a fundamental transformation of one of Alibaba's most important business segments. It also provides a compelling financial rationale for the structural changes now underway, including the creation of Token Foundry and the broader Alibaba Token Hub framework.

From Chatbots to Autonomous AI Agents: The Inflection Point

Wu's comments during the earnings call also touched on a broader technological shift that is reshaping the entire AI industry. He described the current moment as "a pivotal inflection point in the evolution from conversational chatbots to autonomous AI agents," noting that this transition is directly driving explosive growth across the sector.

This framing matters. The move from chatbots — which respond to prompts — to autonomous AI agents — which can independently plan, decide, and act across complex tasks — represents a quantum leap in AI capability and commercial potential. Companies that position themselves at the forefront of this shift stand to capture enormous value. Alibaba, through Token Foundry and the broader Token Hub ecosystem, is betting heavily that it will be one of them.

Alibaba AI Future Research Institute: Looking Further Ahead

Alongside the launch of Token Foundry, Alibaba has also established a new AI Future Research Institute. While details remain limited, the creation of a dedicated research body signals that Alibaba is not only focused on near-term commercial AI applications but is also investing in longer-horizon scientific research and development. This dual approach — combining applied AI product development with foundational research — mirrors the strategies of leading global AI organizations and suggests that Alibaba is building for sustained, multi-decade relevance in the field.

What This Means for the Global AI Landscape

Alibaba's reorganization arrives at a time when competition in the global AI space is intensifying rapidly. With major players across the United States, Europe, and Asia racing to develop more capable models, more efficient infrastructure, and more compelling AI products, the stakes have never been higher.

By consolidating its AI efforts under Token Foundry, aligning them with the Alibaba Token Hub, and placing CEO Eddie Wu at the helm, Alibaba is signaling that it intends to compete at the very highest level. For businesses, investors, and technology watchers alike, the emergence of Token Foundry is a development worth watching closely — because if Alibaba's projections hold, the company's AI transformation is only just getting started.