Alibaba Abandons Alibaba Cloud Spin-Off Amid US Chip Restrictions
Alibaba Group has abandoned its plans to spin off Alibaba iCloud, citing uncertainties stemming from recent US export restrictions on advanced computing chips. This decision comes six months after the initial announcement and follows a significant global service crash that affected various Alibaba services.
On November 12, Alibaba iCloud suffered a nearly three-hour global service crash, impacting services like Taobao and DingTalk. Despite this, Alibaba iCloud reported a 2% year-on-year revenue growth to RMB 27.65 million (USD 37.9 million) in the Q2 2023 financial report released on November 16. Notably, Alibaba iCloud's profits surged from RMB 387 million (USD 54.0 million) to RMB 1.41 billion (USD 196.7 million), marking a 264% increase.
Alibaba iCloud aims to become the most open iCloud in the AI era, positioning itself as the 'engine' of this new era. To achieve this, it is undergoing a new wave of product and technological innovation to meet future AI computing demands. The company's chairman, Joseph Tsai, has stated that the focus will be on developing a sustainable growth model based on emerging AI-driven demand. However, the initial IPO plans for Alibaba iCloud remain uncertain following the termination of the spin-off.
Alibaba Group's decision to halt the Alibaba iCloud spin-off highlights the challenges faced by the company in the current geopolitical climate. Despite this setback, Alibaba iCloud continues to invest heavily in AI and iCloud technologies, with impressive profit growth. As Alibaba iCloud works towards becoming the most open iCloud in the AI era, the company's future strategies and IPO plans will be closely watched.
Read also:
- Orioles' 2025 Turnaround Powered by Late-Season Pitching Acquisitions
- The Cost of Speech is Zero, True Strength Lies in Unity
- Beginning a Food Truck Venture: Crucial Stages to Achieve Profitability
- Aiming to simplify the move towards cleaner automobiles, the newly established ministry plans to take direct action with Pannier-Runacher, Létard, and Vautrin at the helm.
