Why Alibaba is giving up on cloud computing

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Alibaba is giving up on cloud computing. The Chinese e-commerce giant has pledged $1 billion over the next three fiscal years to support its cloud computing customers as it looks to reignite growth after a historical slowdown. The investment consists of “financial and non-financial incentives, such as funding, rebates and go-to-market initiatives,” Alibaba said. The fate of Alibaba's prized cloud unit is up in the air after the company's planned Cloud Intelligence Group, which will house the cloud business AliCloud as well as the tech giant's artificial intelligence and semiconductor research, was announced. AliCloud has a 36% market share in China's domestic cloud computing sector.