New Alibaba Cloud Ads Tout AI Computing Power with Testimonials from Major Customers


Alibaba Group Holding’s cloud computing division on Monday launched a new advertising campaign in China featuring top executives from start-up Moonshot AI and online recruitment platform Zhilian Zhaopin, amid fierce competition in the local market.

The ads, which are currently running at airports in Beijing and Hangzhou, the capital of the eastern province of Zhejiang, promote the industry leader’s ability to support the development of artificial intelligence (AI) at well-known Chinese companies with the slogan: “Alibaba Cloud is the cloud I use”.

In an advertisement, Yang Zhilin, founder of Moonshot AI, named one of the country’s top startups, the “new AI tigers” – praised Alibaba Cloud’s “robust computing power” and large-scale service platform for improving the efficiency of its Kimi model.

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Alibaba, owner of the South China Morning Post, is a major backer of Moonshot AIafter spending around US$800 million to acquire a 36 percent stake in the startup. Kimi Chatbot, launched in October last year and powered by Moonshot AI’s self-developed model, is seen as one of China’s most promising answers to OpenAI’s ChatGPT.

Another ad featured Zhang Yuejia, group chairman at Zhilian Zhaopin, praising Alibaba Cloud for helping the company rapidly deploy large AI models in HR applications.

The Chinese cloud giants have been locked in a fierce competition since last year, with rivals slashing prices to lure customers ranging from big names to small and medium-sized enterprises.

According to researcher Canalys, Alibaba Cloud retained its leading position in the domestic market at the end of 2023 with a 39 percent share. However, growth slowed to 3 percent, compared to Huawei Cloud’s 23 percent and Tencent Cloud’s 27 percent.

In the third quarter of this year, Alibaba Cloud’s revenue rose 3 percent year-on-year to 25.6 billion yuan ($3.5 billion).

According to Canalys, Alibaba Cloud and others are targeting a market that is expected to grow faster this year, thanks in part to the popularity of generative AI.


Data centers run by Alibaba. Photo: Handout alt=Data centers run by Alibaba. Photo: Handout>

According to Andreessen Horowitz, a Silicon Valley venture capital firm, startups that train their own AI models typically spend 80 to 90 percent of their early-stage venture capital funding on cloud providers.

Alibaba, which has developed its own AI models, has also invested in the other three AI tigers: Baichuan AI, Zhipu AI and Minimax.

“We are focused on AI because it is the most powerful element that will transform and accelerate the growth of our businesses,” Alibaba Chairman Joe Tsai and CEO Eddie Wu Yongming wrote in a letter to shareholders in May.

Moonshot AI’s Yang and Zhilian Zhaopin’s Zhang joined a list of industry figures who have previously appeared in Alibaba Cloud ads.

Among them are Wang Xiaochuan, founder of Baichuan AI, Jason Jiang Nanchun, founder of advertising agency Focus Media, and Chen Xiangdong, CEO of educational technology company Gaotu Group.

This article originally appeared in the South China Morning Post (SCMP)the most authoritative voice covering China and Asia for over a century. For more SCMP stories, explore the SCMP app or visit the SCMP’s Facebook And Twitter pages. Copyright © 2024 South China Morning Post Publishers Ltd. All rights reserved.

Copyright (c) 2024. South China Morning Post Publishers Ltd. All rights reserved.

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