Alibaba is pulling out of the cloud business

Core Systems on Alibaba Cloud
(Image credit: Alibaba Cloud)

Alibaba has confirmed plans to list its cloud computing business just months after an announcement that its operations would see the company split into six divisions.

The Chinese ecommerce giant's Cloud Intelligence Group is reportedly set for an IPO in the next 12 months ahead of further IPOs for shopping platform Freshippo and logistics firm Cainiao.

This comes in a period of financial instability for Alibaba, which posted a 2% increase in its quarterly revenue for cloud, falling short of analyst expectations.

Alibaba’s businesses are going up for sale

On an earnings call relating to the recently closed quarter, chairman Daniel Zhang explained: “We would love nothing more than to see one of these little Alibabas...becoming another big Alibaba, as big as the group company is right now.”

A rise in ecommerce platforms has diluted Alibaba’s stake in the sector, now having to compete with the likes of Pinduoduo and even Douyin (better known outside of China as TikTok).

Then, there are the COVID restrictions that have suppressed large proportions of the population and reduced spending. Although the republic is slowly recovering, many businesses have been left facing the challenges of a tough economy.

The country’s cloud sector continues to succeed as more and more operations go online, however growing competition from Tencent, Baidu, and more has caused Alibaba to have to reassess its strategy.

Accounting for 9% of the group’s entire revenue, the cloud business drew in $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-rivalling large language model, though this is nothing unique to Alibaba which resides in a sector flooded with similar offerings.

Via Reuters

Craig Hale

With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!

Read more
Digital clouds against a blue background.
Spending on cloud infrastructure could actually fall in 2025
Apple Intelligence
Apple is reportedly partnering with Alibaba in China for AI features, and it makes sense after DeepSeek
Digital clouds against a blue background.
Cloud spending to reach a staggering $723bn in 2025, thanks partly to the explosive demand for AI resources
Orange servers and networks
Alibaba doubles down on RISC-V architecture with a new secretive 'server-grade' chip that will put AMD and Intel on alert
Digital clouds against a blue background.
GenAI development is pushing along cloud adoption at a record pace
Digital clouds against a blue background.
UK government says Microsoft and AWS unfairly dominate the cloud market
Latest in Pro
Hands typing on a keyboard surrounded by security icons
Outdated ID verification myths put businesses at risk
China
Chinese hackers targeting Juniper Networks routers, so patch now
Google Meet create custom backgrounds
More AI features are coming to Google Workspace
Mac Studio on a desk
I compared Apple's Mac Studio M3 Ultra with 10 Windows workstations and I am truly shocked by what I found
Google Chrome dark mode
Google updates Chrome extension rules to ban affiliate link injection without user action or benefit
Abstract image of robots working in an office environment including creating blueprint of robot arm, making a phone call, and typing on a keyboard
This worrying botnet targets unsecure TP-Link routers - thousands of devices already hacked
Latest in News
Google Gemini Robotics
Gemini just got physical and you should prepare for a robot revolution
Lilo & Stitch Official Trailer
Stitch crashes into earth and steals our hearts with the first trailer for the live-action Lilo & Stitch
GTA 5
GTA Online publisher Take-Two is gunning for a black market that’s basically heaven for cheaters
Y2K cast looking shocked
Y2K has a streaming release date on Max, so you can witness the technology uprising at home
The Discovery+ homepage
Discovery+ just got a big update to its streaming app that makes it more like Max – here are 5 great new features to try
Two Android phones on a green and blue background showing Google Messages
Struggling with slow Google Messages photo transfers? Google says new update will make 'noticeable difference'