Latest news with #AlibabaGroup
South China Morning Post
3 days ago
- Business
- South China Morning Post
Alibaba Cloud to open second data centre in South Korea as AI demand rises
Alibaba Cloud, the cloud computing and artificial intelligence (AI) unit of Alibaba Group Holding , is set to launch its second data centre in South Korea to address growing demand driven by the rapid development of generative AI. Advertisement The company said on Thursday that the new centre would be operational by the end of June, representing a significant step in its international expansion. Alibaba owns the South China Morning Post. 'In line with the rapid advancement of AI-based technologies and increasing digital demand across industries, Alibaba Cloud has been continuously expanding its infrastructure in South Korea,' said Yoon Yong-joon, Alibaba Cloud's country manager. 'Through the launch of this second data centre, Alibaba Cloud will provide customers with more resilient and adaptable cloud environments, ultimately fostering AI innovation across various sectors and expanding the digital ecosystem,' he added. 11:13 How is betting on AI to transform e-commerce How is betting on AI to transform e-commerce Data centres serve as the core infrastructure of cloud computing, providing a centralised operating environment for electronic information equipment and enabling users to access data, software and hardware services through the internet anytime and anywhere.
Bloomberg
3 days ago
- Business
- Bloomberg
Alibaba Cloud to Start Second Data Center in South Korea by June
Alibaba Group Holding Ltd. will open a second data center in South Korea by the end of June, accelerating its multibillion-dollar bet on artificial intelligence and cloud computing. The new facility is part of a 380 billion yuan ($52.9 billion) investment in AI and cloud infrastructure announced earlier this year, an Alibaba spokesperson said. The expansion comes in response to growing demand from South Korean businesses for cloud and AI services, the company said in a statement Thursday.
Globe and Mail
5 days ago
- Business
- Globe and Mail
BABA Down 8% in a Month: Will Partnership With Apple Aid Recovery?
Alibaba Group 's BABA shares have lost 8.2% over the past month, underperforming the Zacks Internet-Commerce industry and the Zacks Retail-Wholesale sector, thus reflecting investor uncertainty despite progress in the company's AI partnership with Apple. The Chinese e-commerce and cloud computing giant recently released versions of its Qwen3 AI models for Apple's MLX architecture, enabling compatibility with iPhones, iPads, MacBooks, and Mac computers. This development represents a significant step toward bringing Apple Intelligence features to the Chinese market, though regulatory headwinds continue to cloud the partnership's future. 1-Month Performance Apple Partnership Advances Amid Regulatory Scrutiny The technical integration of Alibaba's AI models with Apple devices marks meaningful progress in their collaboration to deliver AI-powered features to Chinese consumers. Apple Intelligence encompasses various AI tools, including Genmoji and Writing Tools, which require local partnership to comply with Chinese regulations. The partnership has gained strategic importance as Apple's iPhone sales captured the top position in China during May, with global sales rising 15% year over year in April and May according to Counterpoint Research data. However, the collaboration faces mounting pressure from U.S. officials who have been scrutinizing the arrangement. Reports indicate that White House and congressional officials are examining Apple's plans to integrate Alibaba's AI technology into iPhones sold in China, reflecting broader tensions in U.S.-China technology relations. This scrutiny introduces uncertainty about the partnership's timeline and ultimate implementation, potentially affecting both companies' strategic plans in the crucial Chinese market. Mixed Quarterly Performance Reflects Broader Challenges Alibaba's fourth-quarter fiscal 2025 results presented a mixed picture that disappointed investors. Total revenues reached RMB 236.5 billion, representing 7% year-over-year growth, though this figure missed the Zacks Consensus Estimate by 1.49%. The company's adjusted EBITA showed stronger performance with 36% year-over-year growth to RMB 32.6 billion, indicating operational efficiency improvements. The Taobao and Tmall Group demonstrated resilience with customer management revenues growing 12% year over year, primarily driven by improved take rates. Meanwhile, the Cloud Intelligence Group accelerated growth to 18% year over year, with AI-related product revenues maintaining triple-digit growth for the seventh consecutive quarter. This cloud performance underscores the potential value of the Apple partnership, though regulatory uncertainties may limit near-term benefits. However, various business segments showed mixed results, with some areas like Cainiao Smart Logistics experiencing revenue declines due to operational restructuring. The Zacks Consensus Estimate for fiscal 2026 earnings indicates a downward revision of 1.5% over the past 60 days to $10.62 per share, the market appears to be pessimistic about Alibaba's growth trajectory. See the Zacks Earnings Calendar to stay ahead of market-making news. Regulatory Risks Create Strategic Uncertainty The regulatory environment presents the most significant risk to Alibaba's growth trajectory, particularly regarding the Apple partnership. U.S. resistance toward the Apple-Alibaba AI arrangement could limit cloud revenue upside potential. This uncertainty may prompt Alibaba to delay research investments and capital spending on related infrastructure until clearer regulatory guidance emerges. The company's expansion beyond China continues through partnerships like the recent GoTo Group collaboration in Indonesia, where Alibaba Cloud successfully migrated GoTo Financial's infrastructure. Such international ventures provide diversification opportunities, though they cannot fully offset challenges in core markets. Valuation and Competitive Landscape Despite recent declines, Alibaba's valuation metrics suggest the stock trades at a significant discount compared to global technology peers. The stock's forward 12-month Price/Earnings ratio of 10.61X, as compared to the Zacks Internet-Commerce industry average of 24.05X, remains compressed due to ongoing regulatory concerns and slower growth expectations. This valuation gap reflects market skepticism about Chinese technology stocks generally, though it also presents potential upside for patient investors. BABA's P/E F12M Ratio Depicts Discounted Valuation Competition in China's e-commerce and cloud markets continues intensifying. Domestic rivals like JD and Pinduoduo maintain pressure on e-commerce operations, while international cloud providers like Microsoft MSFT and Amazon AMZN compete for enterprise customers. However, Alibaba's market leadership position and AI capabilities provide defensive advantages, particularly in cloud computing, where technical expertise creates meaningful barriers to entry. The company's financial position remains robust with RMB 366.4 billion in net cash, providing flexibility for strategic investments and shareholder returns. During fiscal 2025, Alibaba repurchased $11.9 billion in shares and announced $4.6 billion in dividends, demonstrating a commitment to shareholder value creation. Investment Outlook: Patience Required Given current uncertainties surrounding the Apple partnership and broader regulatory environment, investors should consider maintaining existing positions while avoiding significant new investments until greater clarity emerges. The technical progress with Apple integration suggests long-term potential, but regulatory risks could delay meaningful benefits into fiscal 2026. The stock's compressed valuation provides downside protection for current holders, while the company's strong cash position and improving operational metrics support a patient approach. Investors seeking new positions might benefit from waiting for the resolution of regulatory uncertainties or more attractive entry points that could emerge if partnership delays materialize. BABA stock currently carries a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Inc. (AMZN): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report Inc. (JD): Free Stock Analysis Report Alibaba Group Holding Limited (BABA): Free Stock Analysis Report
5 days ago
- Business
China's Speed in AI Leaves Japan in the Dust: Can the Tortoise Overtake the Hare?
After stunning the world with the launch of its chatbot DeepSeek, China is moving quickly to deploy generative AI in a wide array of products and solutions. What are the costs and benefits of 'China speed,' and how can the United States and Japan compete? In recent years, China has developed and deployed advanced digital technology at a pace that has stunned the world. What is the secret of its speed and agility? In the following, I explain the mechanism behind 'China speed,' discuss its merits and drawbacks, and compare that process with research and development in the United States and Japan. Turning on a Dime The term 'China speed' has been coined to convey the breathtaking pace at which China has transformed its society through the construction of large-scale public infrastructure and the social deployment of cutting-edge technology. Integral to this phenomenon is the agility with which the Chinese have been able to change directions, sometimes pivoting away from applications they had been pursuing vigorously. A striking example of China speed was recently on display at Expo 2025 in Osaka. On May 12, the China Pavilion kicked off Shenzhen week, showcasing products and solutions from some 60 companies headquartered in that urban center of innovation. Among them was Tencent's new contact-free biometric scanner, which analyzes palm prints and vein patterns for secure user authentication. Once registered, users need only show their palm to the scanner lens to verify their identity. China already plans to use the palm scan system in stores for cashless, cardless payment and in workplaces to clock employees in and out. The China Pavilion at Expo 2025 in Osaka (left, © its display of Tencent's new palm authentication system. (© Taguchi Kota) This innovation is especially striking because, until just a few years ago, China seemed all in on facial recognition as the future of user authentication. Mobile payment services like Tencent's WeChat Pay and Alibaba Group's Alipay had already taken hold, but they required users to scan a QR code with their smartphones. The introduction of facial recognition technology promised to do away with the need for personal devices, allowing registered users to pay simply by presenting their faces to a camera. The technology was also being used at ticket gates and entrances to apartment and office buildings. Facial recognition was one of the innovative technologies whose bold and rapid social deployment attracted so many Japanese investors to the booming city of Shenzhen in the years before the COVID-19 pandemic. Since then, however, the tide has turned, with services like Alipay opting for contactless mobile payment using near field communication. One reason is that facial recognition proved inconvenient during the COVID-19 pandemic, when everyone was wearing masks. But the biggest issues were security and privacy. Photos and videos can be used to trick a facial recognition system into granting access. In addition, many people, concerned about the potential for misuse, objected to being forced to provide a facial photo or scan. The courts were inundated with lawsuits and criminal cases, and on July 27, 2021, the Supreme People's Court of China issued a judicial interpretation setting forth guidelines for the use of facial recognition. Under the new rules, which came into effect on August 1, businesses were legally required to secure customers' explicit consent before collecting and processing their facial data, to offer other options for authentication, and to protect facial data as personal information. With facial recognition in decline, palm recognition has quickly stepped in to fill the vacuum. Deploy First, Regulate Later One can scarcely imagine the cost of installing facial-recognition checkout systems and ticket gates only to change course and replace them a few years later. Perhaps those losses might have been avoided if the powers that be had taken more time studying the risks. But China has advanced this quickly by condensing the development and deployment process to the point where piloting and market penetration occur almost simultaneously. And here in Japan, where caution often leads to paralysis, many are dazzled by such boldness. In China, as we saw in the case of facial recognition, social implementation often precedes legislation. Some have even called China itself a massive 'sandbox'—a special zone where new technologies can be tested by trial and error. But this is not the same as a laissez-faire policy. Take China's dockless bike-sharing system. The service, which allows people to rent bicycles parked all around town, was enthusiastically embraced in China as a convenient, low-carbon mode of transportation. However, as the system expanded, bikes proliferated, and their often-haphazard parking obstructed traffic and walkways. Confronted by these and other issues, the government stepped in to regulate the industry, establishing designated parking areas in cities' commercial districts, making business operators responsible for bike maintenance, and so forth. As of 2025, the system appears to have stabilized, with merits balancing out the downsides. In some cases, such as peer-to-peer finance, the experiment proved unsuccessful, and the service was banned. P2P finance, in which online platforms connect individual lenders with borrowers, experienced a dramatic rise in China after 2010. However, individual investors' lack of access to reliable information made them vulnerable, and the industry became a hotbed of fraud. This led to a regulatory crackdown, and eventually all P2P platforms in China were shut down. Detecting High-Rise Litterbugs China speed has been on vivid display in the field of artificial intelligence. In the 2010s, deep learning fueled the rapid development of computer vision technologies. These advances made it possible for sensor-equipped computers to detect and recognize a wide range of objects and movements. Today China leads the world in products and solutions incorporating computer vision. One of my favorites is the high-rise litterbug detector. The invention was inspired, it appears, by media reports about scofflaws tossing cigarette butts and other refuse from the windows of high-rise apartment and office buildings. The solution arrived at was the installation of AI-enabled surveillance cameras that monitor buildings round the clock and capture video footage whenever something falls, allowing authorities to identify the perpetrator. In Japan, round-the-clock surveillance to apprehend litterbugs would be rejected as excessive and intrusive. But it epitomizes one of the keys to China speed—a willingness to give high-tech solutions a try wherever they offer potential benefits. A similar example is an AI-powered monitoring system for restaurants that detects such hygiene issues as rodents and hatless kitchen staff. AI surveillance systems also help ensure that helmets are being worn at construction sites and that factory inspectors are properly licensed personnel. These examples highlight China's trial-and-error method of devising wide-ranging products and solutions from new technologies. AI's iPhone Moment? Generative AI is another area in which the high-speed trial-and-error approach has paid big dividends. Deployment in this field has accelerated dramatically since the launch of DeepSeek in January 2025. Indeed, some in China are calling it generative AI's 'iPhone 4 moment.' This is a reference, of course, to the Apple iPhone, which revolutionized cellphones and mobile computing. The ripple effects of the device were massive, fueling the development and sale of apps and associated services and transforming economic activity in many sectors. But although the first iPhone appeared in 2007, it was not until three years later, with the release of the iPhone 4, that the transformation began in earnest. This was the 'iPhone 4 moment' that triggered a cascade of new apps, products, and services. OpenAI released ChatGPT in 2022. In the three years since, the chatbot's performance has improved dramatically, as have such open-source AI systems as DeepSeek. Open-source AI can be used free of charge, and it can also be customized—a great boon to companies that lack the resources to create their own generative AI models from scratch. In China, it looks like the race for social deployment of generative AI has already begun. Automakers have announced their intention to integrate DeepSeek into their onboard computer systems. Hospitals, schools, banks, and manufacturers are among those lining up to employ customized AI models. According to media reports, even local governments are jumping on the bandwagon with plans to deploy 'AI civil servants.' Of course, quite a few of these initiatives are likely to fall short of the media hype. But at least one of the dozens of projects being undertaken could produce a global winner. This is the undeniable advantage of China speed. Strengths and Weaknesses China's hit-or-miss approach to technological development also has its drawbacks. The flip side of a willingness to cut one's losses and change course is an unwillingness to invest in long-term, speculative research. This weakness is not limited to private industry. In allocating research funds, the government targets certain high-priority projects that it deems nationally important. But it rarely supports projects aimed at paradigm-changing, outside-the-box technology, preferring to focus on Chinese versions of technologies already available overseas or to pursue the same emerging technologies foreign governments are prioritizing. OpenAI, the American company that created ChatGPT, was founded in 2015 with the highly ambitious goal of developing a form of AI called artificial general intelligence (AGI), which mimics the cognitive functions and capacities of the human brain. Even now, after 10 years of groundbreaking progress, many researchers remain skeptical that AGI can be achieved as an extension of current technology. Nonetheless, OpenAI has been able to secure the funding it needs to pursue its elusive goal. This is what powers the kind of innovation for which the United States is famous. The Japanese approach has its own strengths. Nowadays, people here are inclined to be pessimistic, and many argue that Japanese technology has had its day. But social deployment is proceeding steadily. Mobile payment, bike sharing, and other innovations touted during the Shenzhen boom have successfully permeated Japanese society. Social deployment has proceeded more slowly than in China, but it has also yielded fewer dead ends. Slow and steady sometimes does win the race. AI could be a case in point. With the United States and China battling it out, Japan certainly seems to be on the sidelines at the moment, but it has not ceded the field. One development worth watching is the growing number of Japanese companies involved in secondary development of China's open-source AI models. Drawing on cutting-edge developments in China and the United States alike, slow and steady Japan may yet surprise everyone. (Originally published in Japanese. Banner photo: A cocktail-making robot was one of many AI-powered attractions at the China International Consumer Products Expo in Haikou, Hainan province, April 2025. © Xinhua/Kyōdō.)
Yahoo
11-06-2025
- Business
- Yahoo
Tsai talks, Alibaba regroups around open-source AI
-- Alibaba Group (NYSE:BABA) is working to reestablish its leadership within China's tech sector, turning to artificial intelligence and cloud infrastructure as key pillars of its strategy. Chairman Joe Tsai has signaled a more focused direction after a period marked by regulatory challenges, market pressures, and internal overreach. Speaking at the VivaTech conference in Paris, Tsai acknowledged past missteps while outlining a course correction. 'I think I saw a company that kind of lost its direction a little bit. I think we have expanded too big,' he said, referencing his return to active leadership in mid-2023. A notable inflection point came earlier this year when AI startup DeepSeek launched a new reasoning model that caught major players off guard. 'We read the research papers and we said, 'Holy cow, how come we have fallen behind? We were doing the same things,'' Tsai said, describing how the event prompted an accelerated internal response. As Chinese New Year approached, Alibaba engineers were directed to stay on-site and increase their development pace. 'Our engineering lead decided and said, 'Cancel your Chinese New Year holiday, everybody stay in the company, sleep in the office, we're gonna accelerate our development,'' Tsai said. That sprint led to new releases in the Qwen model series, now among the top open-source LLMs globally. For Alibaba, the episode reinforced the need to operate with urgency and tighter alignment between research and deployment. The company has committed more than 380 billion yuan ($53 billion) over the next three years to expand its AI infrastructure and improve training and inference capabilities tied to Alibaba Cloud. Alibaba's strategy hinges on supporting open-source model development while driving commercial demand for cloud services. By making core models available to developers, the company aims to build ecosystem momentum while leveraging its backend infrastructure as a commercial gateway. Although broader macroeconomic conditions remain a challenge inside China, Alibaba's approach reflects a move to consolidate around core strengths rather than seek expansion for its own sake. The recent AI efforts suggest management is focused on rebuilding competitive positioning with a clearer set of priorities. By pairing scale with more deliberate execution, Alibaba is positioning itself for the next phase of China's tech evolution. The landscape remains highly competitive, but the company appears better equipped to respond than in prior cycles. Alibaba stock is down 1.2% today, as of 12:50 ET. Related articles Tsai talks, Alibaba regroups around open-source AI BofA raises GE Vernova target on rising U.S. power demand, gas turbine growth IPO for space-tech company Voyager surges 125% on debut Sign in to access your portfolio
