TECH

Alibaba announces biggest price cut for AI products

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Alibaba announced this Thursday (29) that it will reduce the prices of some of its Artificial Intelligence (AI) products by up to 55%, the biggest cut the company has made to date. The measure comes as a strategy to attract larger customers, especially AI software developers.

What do you need to know:

  • This is the second time that Alibaba has drastically reduced its prices in a year — it made a 50% cut in April last year;
  • As reported by Reuters, more than 100 products will benefit from the new reduction — many are new, breaking the company's pattern of making only old products cheaper;
  • The Chinese company's goal is to persuade developers to build data-intensive AI models and applications using its cloud services.

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Alibaba's strategy comes as rivals such as Tencent and Huawei offer a series of promotions to convince technology companies to develop AI within their ecosystems.

In 2023, when the company dropped its prices, competitors also did the same, showing a local market in fierce competition. The same should happen with the new reduction.

Alibaba still follows the strategy of attracting customers with low prices, especially targeting medium and small customers who are more price sensitive.

Zhang Yi, an analyst at Canalys, told Reuters.

According to Alibaba, existing customers will be able to enjoy the new rates if they choose to renew their contracts with the company for another year.

Alibaba Cloud was one of China's early entrants into cloud computing. Currently, the service serves around a third of the local market.



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