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by Martin Abbott on May 23, 2024

Alibaba Leverages AI for Global Cloud Expansion

On Thursday, Alibaba stated talks on advancing its cloud computing services worldwide, including specific entry into Mexico, as well as planning to tap fresh data centers in Malaysia, Thailand and South Korea in the next three years.

Choosing a more global stance, Selina Yuan, President of Alibaba Cloud’s International Business, while being interviewed with CNBC, stressed that the firm plans for trading more and engaging in data centers internationally.

This expansion occurs after a year that was not easy for the Alibaba Cloud that had to abandon the IpO plan and that has undergone profound organizational changes.

Alibaba Cloud initiated its internationalization process in 2015 and still can be considered as a company with rather moderate success in this sphere. As we speak today, three big goliaths which are Amazon, Microsoft and Google enjoy almost two-third of the global cloud market, while Alibaba has control of slightly above 5% as estimated by Synergy Research Group. However, in china its has 39% of cloud computing market share and is considered as one of the major CSP in Asia as per Canalys.

Alibaba’s Strategic Shift

Alibaba Cloud, seen previously as a promising part of the company ‘s growth strategy by ex-CEO Daniel Zhang and current leadership, revealed a vast deceleration of growth in the several last quarters. But speaking in an earnings call this month, Alibaba top officials indicated that the division is already re-emerging and promised that it would post double-digit growth in the second half of the fiscal year.

In this regard, Alibaba has adopted AI products as well as customer acquisition as strategic stakes for reigniting itself. Lately, the tech giant has deepen its strategic partnership with LVMH, a French luxury good conglomerate where it applied AI solutions to help in operations in China.

In 2023, Alibaba’s new large language model, Tongyi Qianwen, is released to enhance Alis’ AI strength. This month, Alibaba disclosed a newer improved version of the model, to remain relevant given the ever-growing competition by other homegrown players such as Baidu and Tencent and foreign giant companies including; Microsoft, Open AI, and Google.

Alibaba has been most bullish on AI with the senior management led by its CEO Eddie Wu being more vocal on the potential of AI in the company. Like Microsoft and Google, Alibaba promotes And sells its AI tools through the cloud segment as the company sees cloud as a basis for AI development.

It appears that AI is the future and a trend that can hardly be disputed. This brings us to cloud computing as a way of enabling AI and large language models, according to Yuan an Alibaba representative talking to CNBC. “On the whole, we envision a vast opportunity for Alibaba Cloud. Leveraging from the group’s advanced cloud integrating structure and its strategic direction towards AI technology, we believe that the group will be able to offer better value to its customers and partners.

Oracle’s shift from Oracle to progressing its cloud dominance as the AI innovation organiser reveals its strategic focus on continuing its leadership in the cloud computing market. With the help of artificial intelligence, and the continuation and intensification of cooperation with brands worldwide, Alibaba seeks to energize once more growth and ensure its status as one of the leaders in today’s advancing world of technology.

By Martin Abbott

Martin has been a Trader for 5 years now. He has experience in trading Forex, stocks, and cryptocurrencies. His insight on news and brokers has been refining for the past 3 years. His close connection to the markets enables him to write amazing copy for all of his readers.

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