/cdn.vox-cdn.com/uploads/chorus_asset/file/24016885/STK093_Google_04.jpg)
/cdn.vox-cdn.com/uploads/chorus_asset/file/24808816/Starfield__The_Settled_Systems___Supra_Et_Ultra_____Starfield__The_Settled_Systems___Supra_Et_Ultra_2023_7_25_94252.263_1440p_streamshot.png)
Alibaba has confirmed plans to list its cloud computing business, just months after announcing that its operations would split the company into six divisions.
Chinese ecommerce giant Cloud Intelligence Group is gearing up for an IPO ahead of the next IPOs for shopping platform Freshipoo and logistics firm Cainiao in the next 12 months.
It comes in a period of financial instability for Alibaba, which reported a 2% increase in its quarterly revenue for the cloud, falling short of analyst expectations.
Alibaba’s business is going up for sale
On an earnings call related to the recently closed quarter, Chairman Daniel Zhang explained: “We would love nothing more than to see one of these little Alibabas … become another big Alibaba, as big a conglomerate company as it is now.” Is.”
The growth in ecommerce platforms has eroded Alibaba’s share of the sector, now having to compete with the likes of Pinduoduo and even Douyin (known outside China as TikTok).
Then, there are the COVID restrictions that have suppressed large proportions of the population and curtailed spending. Although the Republic is slowly recovering, many businesses continue to face the challenges of a tough economy.
The country’s cloud sector continues to thrive as more and more operations move online, although rising competition from Tencent, Baidu and others has forced Alibaba to re-evaluate its strategy.
Accounting for 9% of the group’s total revenue, the cloud business generated investments of $2.7 billion in the first three months alone.
Beyond infrastructure-as-a-service, Alibaba Cloud’s offerings also include private cloud and artificial intelligence technologies, including its own GPT-rivaling Big Language Model, although this is not unique to Alibaba which has been competing with similar offerings. Lives in a filled sector.
Via reuters (opens in new tab)
