Alibaba announced a $1 billion investment over the next three fiscal years to support its cloud computing customers as the Chinese e-commerce giant seeks to re-ignite growth following a historic slowdown.The investment includes “financial and non-financial incentives, such as funding, rebates, and go-to-market initiatives,” according to a press release issued by Alibaba on Thursday.
The company also stated that it is developing a program to assist its customers in localizing their cloud computing business needs based on the market.
According to Gartner, Alibaba is the world’s third-largest cloud computing player, trailing only Microsoft and Amazon. While cloud computing is a small part of Alibaba’s overall business currently, the company’s management sees it as a critical component to future growth and profitability.
However, due to the resurgence of Covid in the world’s second-largest economy and a stricter domestic regulatory environment, Alibaba has seen an unprecedented slowdown in growth amid Chinese economic malaise. Alibaba reported its first-ever flat revenue growth in the April-June quarter.
Revenue growth in the company’s cloud computing business has also slowed from the previous quarter.
Alibaba’s investment announcement is also part of the company’s larger push to expand its cloud computing business outside of China.
Alibaba has opened new data centers outside of China in recent years in order to gain customers in markets such as Singapore and Thailand.