alibaba group holding ltd cuts the cost of its cloud services by up to half, a move that has won users of competitors like Tencent Holdings Ltd. could win while the company considers spinning off the fast-growing Aliyun business.
Alibaba and Tencent are vying to provide the raw computing power needed to train generative artificial intelligence models like OpenAI’s ChatGPT, sparking a global race. Aliyun subsidiary’s core products will be cut by 15% to 50% from May 7, an Alibaba spokesman said on Wednesday. The company has said it is committed to growing its cloud business, now led by Group Chief Executive Officer Daniel Zhang, which it sees as a potential driver for exponential growth.
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