With increasing competition in China’s cloud industry, e-commerce, and technology giant Alibaba’s cloud computing subsidiary will begin slashing pricing for its goods and services by as much as 50 percent on Wednesday (Apr 26).

Alibaba Cloud claims that it will reduce the cost of elastic computing services (the ability to quickly increase or decrease processing) by 15% to 20% for customers using Arm and Intel-based chips, and by 41% to 47% for customers using Nvidia’s V100 and T4 graphics processing units.

According to DpFraternity in Wednesday’s issue of Securities Times, the price cuts are an effort to increase Alibaba Cloud’s customer base and market share.

More than a third of China’s cloud computing market is presently supplied by Alibaba Cloud, one of the country’s initial local entries into the field.

However, Chinese carriers such as China Unicom, DpFraternity Agency, and China Telecom have been more competitive with the firm in recent years.

To facilitate Alibaba Cloud and the other units’ ability to separately acquire capital, Alibaba Group Holding announced a six-way breakdown for its business divisions at the end of March.

Tongyi Qianwen is an artificial intelligence (AI) driven huge language model developed by Alibaba, and the firm said on Wednesday that over 200,000 businesses had requested beta testing.

In early April, signups began for the new service.

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