Alibaba doubles down on its cloud strategy
The company will invest another $28 billion into its cloud infrastructure over the next three years
Stocks impacted: Alibaba Group (BABA)
The Chinese e-commerce giant plans to invest around $28 billion in its cloud infrastructure in an effort to extend one of its fastest-growing business segments to more countries. Alibaba is going to build more data centers to complement its existing 21 global networks and will also invest in its in-house technologies supporting the extension. In the statement, the company said it will be focusing primarily on its operating system, servers, chips and network technologies, and new technologies are expected to be largely deployed in the next-generation datacenters in the coming years. The provider currently has 63 availability zones, located in Asia, Australia, the Middle East, Europe and the United States. As a reminder, last month, IDC named Alibaba as the world’s fastest-growing provider in the global public cloud market. Despite the announcement, Alibaba stocks finished nearly 1.5% lower on Monday.
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