Alibaba, the Chinese tech giant, is making significant strides in its cloud division, relying on artificial intelligence (AI) to drive growth and expand its global dominance. This move comes as the company aims to reinvigorate momentum, which has slowed in recent quarters. Alibaba executives have expressed confidence in the cloud division’s return to “double-digit growth” in the second half of the current fiscal year.
To achieve this, Alibaba is leveraging its AI products and focusing on attracting more customers. One significant development is the expansion of its partnership with French luxury house LVMH. LVMH has started utilizing Alibaba’s AI tools in China, showcasing the company’s commitment to integrating AI into its services.
Alibaba’s efforts in AI are centered around its large language model (LLM), a software trained on massive amounts of data that can support various AI applications. In 2023, Alibaba launched its LLM called Tongyi Qianwen. This month, the company introduced a more advanced version, aiming to keep pace with other Chinese rivals like Baidu and Tencent, as well as U.S. tech giants Microsoft, OpenAI, and Google.
Senior management at Alibaba, including CEO Eddie Wu, have expressed enthusiasm about the company’s potential in AI. Similar to Microsoft and Google, Alibaba sells its AI products through its cloud division. Yuan, an Alibaba executive, highlighted the importance of cloud computing in supporting AI and the company’s commitment to delivering value to its customers and partners.
“We think AI is the future, is definitely the trend, and how (do) we support the AI and large language model? Cloud computing,” Yuan said in an interview. “We think is really the good time for the Alibaba cloud. We have our very clear strategy. We have our large language model, and I think we can do more for the business, for our customer and partners.”
Alibaba’s push into AI is part of its broader strategy to solidify its position in the global tech landscape. With its cloud division as a key driver, the company aims to boost growth, attract new customers, and foster innovation. By investing in cutting-edge AI technology, Alibaba positions itself to compete with both domestic and international players.
As the company’s cloud division looks to regain momentum, Alibaba’s commitment to AI will likely be a significant factor in its success. With the launch of the advanced version of its large language model and strategic partnerships, Alibaba is well-positioned to take advantage of the AI revolution and further establish its dominance in the cloud computing market.
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