Alibaba Group Holding Limited (NYSE:BABA) announced Thursday that it has expanded its global cloud computing availability. The head of the unit’s international department highlighted the company’s AI products as a growth driver.
The Chinese technology giant has expanded the availability zone of its cloud computing products to Mexico for the first time.
Over the next three years, it plans to build new data centers in key markets including Malaysia, Thailand and South Korea, CNBC quoted Selina Yuan, president of Alibaba Cloud’s international division, in an interview on Wednesday.
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According to the Synergy Research Group Amazon.Com Inc (NASDAQ:AMZN), Microsoft Corp (NASDAQ:MSFT), and Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) owned Googling account for about 67% of the global cloud market share, while Alibaba has just under 5%, CNBC writes.
In China, Alibaba dominates 39% of the market, according to Canalys.
Alibaba executives indicated during an earnings call that its cloud division is likely to return to “double-digit growth” in the second half of the current fiscal year.
On Wednesday, Alibaba expanded its partnership with French luxury house LVMH, which has started using Alibaba’s AI tools in China.
In 2023, Alibaba launched its major language model (LLM), Tongyi Qianwen. This month, the company rolled out a more advanced version.
Alibaba has already waged a price war with its contemporaries by slashing the prices of its cloud and artificial intelligence services.
Alibaba looks to raise $4.5 billion through a convertible bond offering to finance its share buyback.
Meanwhile, Chinese stocks are being hit hard by negative speculation from US short sellers.
Alibaba shares have lost 0.5% in the past 12 months due to cutthroat competition and a weak economy. Investors can gain exposure to the shares through Global (NASDAQ:EBIZ) and Matthews International Funds Matthews Pacific Tiger Active ETF (NYSE:ASIA).
Price promotion: BABA shares were trading 0.12% lower at $80.70 premarket at last check on Friday.
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