Alibaba’s AI-Driven Cloud Expansion: Fueling Global Growth

  • Alibaba expands global cloud computing availability, targeting key markets like Mexico, Malaysia, Thailand, and South Korea.
  • Amid management reshuffle and IPO cancellation, Alibaba aims for double-digit growth in cloud division.
  • Leveraging AI products, particularly Tongyi Qianwen, Alibaba strengthens partnerships and competes with global tech giants.
  • Senior management highlights AI’s pivotal role, positioning cloud computing as an enabler for innovation and customer value.

Main AI News:

Alibaba places its bet on AI to drive cloud expansion as it broadens its global footprint in pursuit of catching up with leading US tech giants. The Chinese tech titan announced on Thursday the expansion of its global cloud computing reach, with the head of its international division highlighting the pivotal role of AI products in propelling growth.

Selina Yuan, President of Alibaba Cloud’s international arm, emphasized the company’s commitment to intensifying efforts and investments in international data centers during an interview with CNBC on Wednesday. This strategic move includes extending the availability zone of cloud computing products to Mexico for the first time and establishing new data centers in crucial markets such as Malaysia, Thailand, and South Korea over the next three years.

This expansion drive comes amid a challenging period for Alibaba Cloud, marked by the cancellation of a planned IPO and significant management restructuring. Despite facing headwinds, Alibaba is determined to regain momentum, with executives expressing confidence in a return to double-digit growth for the cloud division in the latter half of the fiscal year.

To reignite growth, Alibaba is banking on its AI prowess and customer acquisition efforts. The company recently bolstered its partnership with French luxury brand LVMH, leveraging its AI tools in the Chinese market. Furthermore, Alibaba unveiled Tongyi Qianwen, its large language model, in 2023 and has since introduced an enhanced version of the model, positioning itself to compete with domestic rivals like Baidu and Tencent, as well as global tech behemoths Microsoft, OpenAI, and Google.

Alibaba’s senior leadership, including CEO Eddie Wu, has underscored the transformative potential of AI, emphasizing its integral role in the company’s cloud offerings. By leveraging cloud computing infrastructure, Alibaba aims to capitalize on the burgeoning AI trend, positioning itself as a frontrunner in driving innovation for its customers and partners.

As Yuan aptly summarized, “We believe AI is the future, the prevailing trend, and cloud computing is the enabler. This is an opportune moment for Alibaba Cloud, armed with our cloud infrastructure and advanced AI capabilities, to deliver even greater value to our stakeholders.


Alibaba’s strategic focus on AI-powered cloud expansion underscores its commitment to compete with leading US tech giants globally. By investing in AI technologies and bolstering its cloud infrastructure, Alibaba is poised to drive innovation and deliver enhanced value to customers and partners, signaling intensified competition in the cloud market.