Alibaba teams up with Nvidia to work on its cloud computing and artificial intelligence division.
According to sources, Alibaba Group Holding is said to be working on its cloud computing division in the coming times. Bloomberg reported that the Chinese tech giant would be teaming up with the American technology corporation, which is well known for manufacturing, designing, and selling graphics processing unit (GPU) and chips, Nvidia Corporation.
Both parties will be working together to bolster Alibaba’s cloud computing and artificial intelligence segment. Furthermore, it is believed that the company will be having at least 1,000 developers that will work on its big data platform in the upcoming years.
AliCloud is known as the cloud-computing arm of the biggest e-commerce operator of China. It suggested that the collaboration means to improve and further invest in data analysis and machine learning. AliCloud is putting $1 billion at stake with a perception that a boost will be observed in terms of processing and storage from governmental organizations and other companies in the coming decade. The ecommerce giant is trying its best to come at par and compete with Amazon in terms of cloud computing.
According to Bain & Co., “The investment also reflects Alibaba’s own appetite for information processing as China’s online-retail market grows to 10 trillion yuan ($1.5 billion) by 2020.” Alibaba Group is looking forward to making its move in the cloud-computing sector through AliCloud. It realizes that customers are offered software and services through remote data centers.
The datacenters of big tech companies are same as the size of American football fields. Hence, this forced the e-commerce giant to launch its second datacenter in the Silicon Valley in October and is now looking forward to working on its first datacenter in Europe.
AliCloud’s president, Simon Hu, stated in a presentation in Shanghai, “AliCloud’s rate of growth is one of the fastest among global peers. Apart from being fast-expanding in Asia, we will also maintain our growth in Europe and the Middle East.”
Bloomberg reported that AliCloud wants to expand its reach and do something beyond cloud computing services and solutions. The arm of China’s biggest e-commerce platform earns revenues by charging its clients a fee for using its services. It is believed that the business could soon generate $1 billion of Alibaba’s total revenue by the end of 2018.
AliCloud was previously known as Aliyun and it was said to be the next promising cloud computing infrastructure in the market due to exponential growth potential.
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