Alibaba Group has announced intentions to expand its cloud presence with new data centers in strategic Asian markets, with a focus on leveraging artificial intelligence (AI) as a key driver of growth.
In a joint letter to shareholders following the group’s fiscal 2024 results, Alibaba Chairman Joe Tsai and CEO Eddie Wu emphasized the transformative impact of AI across industries.
The company reported a notable 8% year-on-year revenue increase to 941.17 billion yuan ($130.35 billion) for the year ended March 31, accompanied by a 9% rise in net income to 71.33 billion yuan ($9.88 billion).
Highlighting AI as a pivotal element driving growth across its businesses, Tsai and Wu underscored its potential to enhance user experiences and revolutionize business models.
They stressed the importance of embracing AI advancements to stay competitive and capitalize on emerging opportunities.
Alibaba’s investment strategies vary across its core operations, particularly in e-commerce and cloud services.
While its e-commerce arm, encompassing Taobao and Tmall Group, requires continued innovation, Alibaba’s cloud business is positioned to become China’s leading public cloud infrastructure provider.
This entails prioritizing long-term growth over short-term revenue gains, especially in projects with low margins.
Expanding its global data center footprint is a key initiative for Alibaba, with plans to establish new sites in strategic markets such as Mexico, South Korea, Malaysia, Thailand, and the Philippines over the next three years.
These investments aim to bolster Alibaba’s international cloud and AI capabilities, enhancing its offerings for global customers.
Alibaba also revealed plans to make its generative AI development platform, Model Studio, accessible to international customers through availability zones in Singapore.
This will provide access to Alibaba’s advanced language model, Tongyi Qianwen (Qwen), further enriching its AI capabilities.
Despite recent shifts in strategic priorities, including the cancellation of IPO plans for its logistics unit Cainiao and the decision to retain its cloud business, Alibaba remains committed to advancing its cloud and AI initiatives.
CEO Eddie Wu emphasized the synergistic relationship between AI and cloud computing, highlighting their role as catalysts for future growth and innovation.
