AI Race Sees Alibaba Cloud Announce Massive Price Cuts

(CTN News) – As part of its efforts to attract heavy users, particularly artificial intelligence software developers, Alibaba Cloud on Thursday announced that it will slash the prices of some of its products by up to 55%, its most severe price cut to date, amid intensifying competition to attract them.

After cutting prices by as much as 50% in April, Alibaba Group Holding’s cloud services arm has reduced prices again, this time by as much as 20%, making it the second time that the Chinese e-commerce leader has done so in less than a year.

A cloud service provider said it would lower the prices of over 100 products by an average of 20% as a result of the price cut.

As part of latest effort to entice developers to use its cloud services to build data-intensive AI models and applications,

Alibaba has slashed its prices in order to attract their attention.

In order to convince tech firms to develop AI within their ecosystems, rivals such as Tencent Holdings and Huawei Technologies, which also cut cloud prices last year after Alibaba’s lead, have offered a number of promotions in order to persuade them to establish their own ecosystems.

In an interview with the Beijing News on Thursday, Alibaba Cloud executive Liu Weiguang told reporters the company was launching a price reduction campaign to make cloud services more accessible to more enterprises and developers.

As a part of its long-term plans, Alibaba wants to build the market’s most open cloud, according to Liu.

There are several reasons why Alibaba Cloud was one of China’s earliest entrants into cloud computing. In terms of market share, it currently serves approximately one third of the local market.

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