Ark Invest’s Bold Bet on China’s AI-Led Tech Revival

After a hiatus of four years, Ark Invest, led by the renowned Cathie Wood, has taken a decisive step by investing in Alibaba amid signs of China’s burgeoning AI technology resurgence. This move by Ark Invest signifies a notable shift in sentiment towards Chinese tech stocks.

Rediscovering Alibaba

On September 22, 2025, Ark Invest made headlines by purchasing significant shares of Alibaba ADR through two of its ETFs, totalling approximately $16.28 million. The specific investments were split between their ARKF and ARKW funds. In ARKF, they acquired 49,799 shares worth $8.18 million, while ARKW saw the purchase of 49,291 shares at a value of $8.10 million.

The investment came at a time when Alibaba’s stock had reached its highest point since November 2021. The stock has nearly doubled in value this year. This surge happens even as competitors like Pinduoduo put pressure on its core e-commerce business. Yet, many investors remain confident, betting on Alibaba’s strategic push into artificial intelligence as a catalyst for renewed growth.

Interestingly, Ark Invest’s initial foray into Alibaba dates back to 2014 during its IPO. However, they liquidated their holdings in September 2021 due to regulatory uncertainties in China. Now, with the regulatory environment stabilizing, Ark’s renewed investment reflects optimism in China’s path towards technological advancement and smarter investments in AI.

Expanding Investment Horizons

Following the 2021 slump in Chinese internet stocks, Ark Invest had been conservative in its approach to the Chinese market. But recent moves indicate a strategic shift. Earlier this year, Ark began increasing its stake in Baidu, a leading search engine provider. As of this week, Ark has continued to expand their holdings, bringing the total to around $47 million.

Alongside Alibaba and Baidu, Ark’s investment scope extends to other innovative Chinese companies. Their ETFs have also ventured into electric vehicle manufacturer BYD, autonomous driving tech firm Pony.ai, and JD Logistics, albeit in smaller quantities.

Overall, Ark Invest’s rejuvenated interest in China underscores a broader market belief in the potential of AI and tech-driven innovations to revitalise China’s tech sector amid global economic challenges.