Joseph Tsai:
- “Many challenges arise with AI development, and innovative solutions must be found.”
- “A leader must have the ability to work with people smarter than them.”
- “Alibaba’s main innovation was transitioning to digital payments, and cloud computing has boosted our profits.”
- “I consider myself an athlete who lost his way into technology, and three years ago, I decided to gradually step down from the CEO position.”
Joseph Tsai, Co-Founder and Chairman of Alibaba Group, revealed that he decided three years ago to gradually step down from his executive role and hand over the CEO position to a younger successor—12 years his junior.
He emphasized that a leader must have the ability to work with people smarter than themselves, especially as a company expands beyond their personal capabilities.
“To sustain success, you must surround yourself with the brightest minds,” he stated.
Tsai made these remarks during a keynote session titled “Survival of the Smartest: How Innovation Shapes Our Future,” moderated by Jeffrey Katzenberg, Co-Founder of WndrCo, as part of the World Government Summit 2025 held in Dubai over three days under the theme “Shaping Future Governments,” concluding today.
Early Days at Alibaba
Speaking about Alibaba’s beginnings, Tsai said: “Our main innovation was transitioning to digital payments (e-pay).
Today, we generate significant profits and focus heavily on cloud computing.”
He added, “For me, it was an opportunity to participate and understand how the company operated in an exciting space like the internet.
I was 35 years old at the time. But now, 25 years later, Alibaba has grown massively, with a market capitalization exceeding $230 billion.”
The Formula for Success
Discussing what he considers the key to success, Tsai noted that 99% of startups face failure but emphasized resilience and adaptation as critical factors.
“The title of this session reflects both success and survival—they go hand in hand. When we started, we didn’t have much capital, but we focused on survival, overcoming failures until we took off. My message to everyone is: as long as you’re alive, you have an opportunity to innovate.”
He continued, “Looking at Alibaba’s history, we didn’t grow through acquisitions, but by fostering businesses, then expanding to consumers, and ultimately building revenue streams through digital payments. Today, we generate substantial profits, largely driven by cloud computing.”
Artificial Intelligence
Regarding AI, Tsai expressed his fascination with its rapid advancements, stating: “AI applications continue to amaze me with their speed of development.
The AI race is so intense that yesterday’s answer is different from today’s. Every new model launched is the best at that moment—until someone releases an even better one.”
He praised the DeepSeek project, saying: “DeepSeek is a major breakthrough because it demonstrates how engineering innovation can model multiple languages.
Right now, many investors are backing this pioneering effort.
” He also highlighted AI’s future impact on education.
Tsai pointed out that AI comes with numerous challenges that need solutions before it can have a substantial economic impact.
“Looking at DeepSeek, I believe some companies will have to invest hundreds of billions in computational modeling to develop more advanced AI. But before doing that, we must identify and address the challenges first.”
From Tech to Sports
Speaking about his venture into sports investment, Tsai shared, “I played American football, and unlike many entrepreneurs, I was an athlete first before entering the tech industry.
In 2017, I had the opportunity to invest in sports, so I decided to acquire an NBA team. Today, I’m happy with that decision because the value of this investment has increased significantly.”
العربية (Arabic) To read the article in Arabic, click here
