Alibaba Cloud Slashes Prices Amidst Intensifying Competition in AI Development

China’s Alibaba Cloud has announced a significant price reduction for products hosted in its offshore data centers, with cuts reaching up to 59 percent. This move comes amidst escalating competition in the quest to attract artificial intelligence software developers.
Alibaba Cloud business
Price cut announced in the Alibaba Cloud website indicates that its Cloud offering will be one of the most cost effective for enterprise customers and start-ups. Alibaba Cloud is the market leader in China.


The cloud service provider disclosed that various products spanning computing, storage, network, database, and big data categories will see an average price reduction of 23 percent. Notably, this marks the third instance within the past year that Alibaba’s cloud arm has initiated price reductions, with a similar program targeting domestic users announced in February.

Alibaba’s latest price cuts signal its ongoing efforts to entice developers into leveraging its cloud services for building data-intensive AI models and applications, Reuters news report said.

According to estimates from Canalys, expenditure on cloud infrastructure services in mainland China surged by 18 percent year-on-year in Q3 2023, reaching US$9.2 billion, capturing 12 percent of the global cloud spend.

Despite a somewhat conservative market landscape, largely reliant on government and state-owned enterprises for growth stimulation, cloud providers are intensively focused on AI innovation and investment, continually introducing new AI products and solutions.

Alibaba Cloud asserted its dominance in Q3 2023, commanding a 39 percent market share. In its recent earnings report, Alibaba revealed the abandonment of plans to spin off its cloud business unit. Instead, Alibaba Cloud is strategically optimizing profitability by minimizing low-margin project-based operations.

Despite a slowdown in revenue growth, Alibaba Cloud remains steadfast in its commitment to rolling out new AI products. Among its recent endeavors is the launch of the “Bailian” platform in October 2023, serving as a comprehensive AI foundation model development platform. This platform simplifies complex tasks for users, encompassing model selection, fine-tuning, training, and development by granting access to a diverse array of AI foundational models.

Alibaba Cloud recently announced the inauguration of its inaugural data center in the Central China region in September, situated in Wuhan. News Desk

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