China and US agree to extend trade tariff truce, says Li
Investing.com-- Alibaba (NYSE:BABA) Cloud on Wednesday announced the opening of a third data center in Malaysia and outlined plans to open a second center in the Philippines by October, as the Chinese internet giant continues to build out its artificial intelligence ambitions.
The company said in a statement that it is also establishing a new AI-focused center in Singapore, and that it plans to expedite development of its cloud network across the globe in the coming three years.
The push comes after Alibaba earlier this year committed $53 billion of investment in cloud and AI over the next three years, as it pivots further into the fast-growing technology. Alibaba is at the forefront of China’s AI development efforts, and has launched a series of new generative AI models this year.
Building out more cloud capacity is at the heart of this push, given the high amounts of computing power required to power AI models and to scale them up for more customers.
The company’s AI push has reaped stronger returns for its Cloud unit, while Alibaba’s core e-commerce business also benefited from improving Chinese consumer trends in recent quarters.
But spending on AI has also quashed the company’s margins, although it has expressed little intent to slow its capital expenditures.