Alibaba's U-turn on cloud unit spin-off lops $20 bln off its market value
Alibaba Group's Hong Kong shares slumped 10% on Friday after it scrapped plans to spin off its cloud business, citing uncertainties fuelled by U.S. curbs on exports to China of semiconductors used in artificial intelligence applications. Alibaba's concerns over the U.S. export curbs announced by Washington in October come on the heels of similar worries raised this week by Chinese social media and gaming company Tencent Holdings which said the restrictions would force it to seek domestically produced alternatives. The latest Alibaba news underscores broader hurdles facing China's tech companies, with the export curbs making it harder for them to get crucial chip supplies from U.S. companies. Focus on AI On Thursday, Alibaba Chairman Joseph Tsai told a post-earnings call that the company would now focus on growing the cloud business and providing investment for its artificial intelligence drivers.
Discover Related
400% rally in 5 years! Small-cap stock below ₹50 jumps 4% after this business update
Alibaba to release open-source version of video generating AI model
Amazon to stop support for communications service Chime next year
Alibaba CEO Wu Says AGI Is Now Company’s ‘Primary Objective’
China’s Alibaba sees revenue surge on back of artificial intelligence, e-commerce
Amazon shares tank 4% on weakness in cloud computing unit after Q1 forecasts miss Wall Street estimates
Alibaba releases AI model it says surpasses DeepSeek
Tech Titans' AI Bets Paying Off: A Record Quarter for Cloud Businesses
Salesforce beats second-quarter estimates on steady cloud demand
Amazon reports boost in quarterly profits but misses revenue estimates
Amazon reports boost in quarterly profits but misses revenue estimates
US firm's AI tech ban set to inspire homegrown innovation
US firm's AI tech ban set to inspire homegrown innovation
Amazon at 30: From online bookseller to two-trillion-dollar tech giant
How price cuts will push firms to embrace AI, digitalization
How price cuts will push firms to embrace AI, digitalization
Amazon becomes the 5th U.S. company to reach $2 trillion in stock market value
LLM price war sees cream rise to top