THE WHAT? Alibaba is to invest some US$28 billion in its cloud computing division, according to a report published by Bloomberg.
THE DETAILS The unit saw revenue grow 62 percent year-on-year to RMB10,721 million in the quarter ended December 31, 2019 and is being employed as a key tool in the fight against COVID-19 to boot.
The funds will be used to expand infrastructure, develop new software and recruit new clients, says Bloomberg.
THE WHY? Bloomberg argues that an investment at this scale signals a change in priority for Alibaba, and an admission that ‘exponential consumer growth’ is no more.