## Alibaba’s New CEO Outlines Strategic Priorities
In an internal letter reviewed by Reuters, Alibaba Group’s newly appointed CEO, Eddie Wu, has emphasized that the tech giant’s strategic focus will be centered on artificial intelligence (AI) and prioritizing users. Wu also highlighted the importance of nurturing young talent within the company, particularly those born after 1985, in order to maintain a start-up mindset and avoid stagnation.
Wu, one of the original founders of Alibaba, has taken the helm during a critical period for the company. As it undergoes its most significant organisational restructuring in its 24-year history, Wu has stepped in to outline his strategic priorities.
## Wu to Lead Alibaba’s Cloud Computing Unit
In an unforeseen twist, Alibaba announced late last Sunday that Wu will concurrently serve as CEO of its cloud computing unit, replacing Daniel Zhang. This news came as a surprise to many, as Zhang had indicated in June that he was stepping down as CEO of Alibaba Group to focus on the cloud division, which is aiming to go public by May 2024.
The Cloud Intelligence Group, valued at $41 billion to $60 billion this year, is one of five units that Alibaba is spinning off as part of its restructuring. The cloud unit is Alibaba’s second-largest revenue source after domestic e-commerce and is home to the group’s generative artificial intelligence model, Tongyi Qianwen.
## AI: A Key Change Agent
Wu, in his letter, stressed the transformative potential of AI across all sectors. “Over the next decade, the most significant change agent will be the disruptions bought about by AI across all sectors,” he wrote. “If we don’t keep up with the changes of the AI era, we will be displaced.”
Alibaba beat analyst expectations in its first-quarter earnings report last month. Nevertheless, its recovery from a two-year regulatory crackdown has been complicated by the dual challenges of increased competition and a slowing Chinese economy.
Economic headwinds have led more domestic e-commerce consumers to low-cost platforms, such as PDD Holdings’ Pinduoduo and ByteDance’s Douyin, the Chinese version of TikTok. This has prompted Alibaba’s domestic e-commerce arm to focus on value-for-money segments.
The cloud unit reported a 4% revenue growth for the quarter, the smallest among the group’s six business units. However, analysts estimate it is China’s largest cloud provider with a 34% market share, ahead of Huawei Technologies, Tencent Holdings and Baidu.
The report was compiled by Casey Hall, with editing by Gerry Doyle and Stephen Coates.
Original Story at www.reuters.com – 2023-09-12 05:51:30
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