Alibaba Cloud, the cloud computing division of e-commerce and tech giant Alibaba, has announced that it will be reducing prices for its products and services by up to 50%. This move is aimed at capturing a larger share of China’s competitive cloud market. The price cuts will be effective from Wednesday and services that use Arm and Intel-based chips will be reduced by 15% to 20%, while Nvidia’s V100 and T4 graphics processing units will drop between 41% to 47%.
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Zhang Yi, who tracks China’s cloud computing sector at research firm Canalys, has stated that these price cuts are a way for Alibaba to attract more customers. However, the impact of these cuts will depend on the specific services that clients buy. Alibaba Cloud was one of the earliest domestic entrants into cloud computing in China and currently supplies more than one-third of the sector in the country. But in recent years, the company has faced intense competition from Chinese carriers such as China Unicom and China Telecom.
In late March, Alibaba Group Holding Ltd announced a six-way breakup of its business divisions. This breakup will allow Alibaba Cloud and other units to raise funding independently. Additionally, on Wednesday, Alibaba announced that more than 200,000 enterprises have requested beta testing for Tongyi Qianwen, the company’s AI-powered large language model.
