Connect with us

Hi, what are you looking for?

BUSINESS

China’s Alibaba to scrap cloud unit spinoff in response to US chip curbs

quantum
A man walks past a logo of Alibaba Group at its office building in Beijing, China August 9, 2021. REUTERS/Tingshu Wang

China’s Alibaba plans to scrap cloud unit spinoffs in response to US chip curbs. In reaction to export restrictions imposed by the United States on processors used in artificial intelligence applications, China’s Alibaba Group Holding (9988. HK) announced on Thursday that it will abandon plans to spin off its cloud computing business.

It also announced revenue for the second quarter that was in line with market forecasts, which caused its U.S.-listed shares to drop by almost 5% in premarket trade.

“The recent expansion of U.S. restrictions on the export of advanced computing chips has created uncertainties for the prospects of Cloud Intelligence Group,” according to Alibaba.

According to statistics provided by LSEG, the e-commerce behemoth reported quarterly sales of 224.79 billion yuan, equivalent to $31.01 billion. This figure is higher than the average forecast of 224.32 billion yuan provided by experts.

The economic recovery in China has been inconsistent. Although the industrial and retail sectors performed better than expected, the property sector continues to undermine consumer confidence, which is still experiencing a crisis.

Alibaba has resorted to pressing merchants to price aggressively during its Singles Day event, aiming to take on competitors like Douyin and PDD Holdings (PDD.O.) Pinduoduo, who have been selling lower-cost items year-round. This is because Alibaba wants to take on competitors selling lower-cost products throughout the year.

Eddie Wu, one of Alibaba Group’s co-founders and a long-time lieutenant of previous leader Jack Ma, took over as CEO of Alibaba Group from former group chief executive Daniel Zhang in September. These are the first quarterly results for Eddie Wu, one of Alibaba Group’s co-founders.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

The future of technological innovation is here. Be the first to discover the latest advancements, insights, and reviews. Join us in shaping the future.
SUBSCRIBE

You May Also Like

News

More than 40 measure are included in Ofcom’s plan to protect youngsters from content that offers with eating problems, self-damage, suicide, and pornography. Concerns...

Innovation

Overview Changing the decor in your property shouldn’t be a hard or high-priced challenge. Simple do-it-yourself initiatives can revitalize your residing place with a...

Electronics

Presenting the Samsung 65” Class OLED S95C TV—the height of current fashion and stunning visual readability. With a mean rating of 4.1 stars based...

Electronics

Reassessing Entertainment Choices: Streaming Costs vs. Physical Media Many customers are reassessing their leisure alternatives in light of the growth of streaming offerings combining...

SUBSCRIBE

The future of technological innovation is here. Be the first to discover the latest advancements, insights, and reviews. Join us in shaping the future.