China’s Alibaba Cloud stated that it will decrease the pricing of certain of its goods by up to 55% amid tight rivalry to attract large clients.
China’s Alibaba Cloud announced on Thursday that it will reduce the prices of certain of its products by up to 55%, its steepest price fall to date, amid fierce competition to recruit heavy customers, notably artificial intelligence software developers.
This would be the second time in less than a year that the cloud arm of Chinese e-commerce leader Alibaba Group Holding (9988.HK) opens a new tab and has reduced pricing, following cuts of up to 50% in April.
The cloud service provider announced that it will decrease the pricing of over 100 goods by an average of 20%.
Alibaba’s price cuts are the latest push to entice developers to use its cloud services to create data-intensive AI models and applications.
Rivals such as Tencent Holdings (0700.HK) and Huawei Technologies (HWT.UL), who followed Alibaba’s lead in lowering cloud rates last year, have provided a variety of discounts to persuade tech companies to develop AI within their ecosystems.
“We decided to launch the price reduction campaign to lower the threshold of cloud services for more enterprises and developers,” Alibaba Cloud chief Liu Weiguang told a conference in Beijing on Thursday.
According to Liu, Alibaba aims to create the most open cloud in the market.
Alibaba Cloud was one of China’s early adopters of cloud computing. It currently serves around one-third of the local market.
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