Alibaba Cloud founder says true AI innovation comes from vision, not high salaries

Alibaba Cloud’s founder, Wang Jian, has challenged the prevailing trend in the tech industry by asserting that high salaries for AI talent are not the primary driver of innovation. In an interview with Bloomberg, he emphasized that true breakthroughs stem from identifying the right individuals to tackle uncharted challenges, rather than relying on expensive hires. “The only thing you need to do is get the right person,” he said. “If it’s a new business or true innovation, it’s about talent, not the price tag.” Wang, who established Alibaba Cloud in 2009, criticized the focus of U.S. tech giants on maintaining existing business success. “They’re fixated on average technology,” he noted. Instead, he highlighted China’s potential to explore cutting-edge advancements that remain unexplored globally. “What happened in Silicon Valley isn’t the winning formula,” he added, contrasting it with the approach taken by Chinese companies. His remarks come amid a surge in competition among major tech firms to attract top AI talent, a strategy likened to sports teams vying for star players. Recent examples include Meta’s $14.3 billion investment in Scale AI, which secured a 49% stake in the company and led to the hiring of its CEO, Alexandr Wang. Similarly, OpenAI’s Sam Altman revealed that Meta had attempted to lure his employees with $100 million signing bonuses. Google’s $2.4 billion acquisition of Windsurf, an AI startup, further underscores this trend, as the company sought to secure both its leadership and intellectual property. Wang argued that chasing the same pool of elite talent is not always effective. “Whenever everyone knows these are talents, it’s better for you not to get them,” he said, suggesting that innovation thrives on unique vision rather than conventional recruitment tactics. He stressed that the focus should be on long-term goals and the direction of technological development. The Chinese AI landscape, Wang noted, is marked by dynamic competition rather than cutthroat rivalry. “No single company or individual can sustain dominance indefinitely,” he said, describing a cycle where firms rise, slow, and then regain momentum. This competition, he argued, accelerates technological progress through rapid iteration. “I don’t think it’s brutal, but it’s very healthy,” he added. Chinese tech giants are prioritizing open-source AI models, which allow public access to code and architecture for broader collaboration. Analysts suggest this strategy reflects a focus on consolidation to maintain competitiveness. For instance, Tencent has integrated its Hunyuan model and DeepSeek R1 into platforms like WeChat, while Baidu has adopted DeepSeek R1 in its search engine. Nvidia CEO Jensen Huang recently highlighted China’s growing influence in the AI sector, calling its progress “fantastic.” He noted that domestic models like DeepSeek and Manus are emerging as strong contenders against U.S.-developed systems. Huang also pointed to the close race in AI chip development, stating that China is “right behind us” in this critical area. Wang’s perspective aligns with a broader shift in how innovation is perceived. While U.S. companies often prioritize top-tier talent through high compensation, he advocates for a more strategic approach centered on vision and adaptability. This contrast reflects differing philosophies in the global AI race, where China’s collaborative and iterative strategies are gaining traction alongside the U.S.’s competitive hiring practices. Alibaba Cloud and Wang Jian have not commented further on the interview, but his remarks underscore a growing debate about the sustainability of traditional talent acquisition models in an industry defined by rapid change and intense rivalry.