- Alibaba Group Holding (NYSE:BABA) said it is going to invest 200 billion yuan ($28 billion) in its cloud infrastructure over three years
Alibaba Group Holding (NYSE:BABA) said it is going to invest 200 billion yuan ($28 billion) in its cloud infrastructure over three years, according to Reuters. This investment is following a surge in demand for business software due to the coronavirus pandemic in China.
And Alibaba said it will spend the funds on semiconductor and operating system development along with building out its data center infrastructure.
Alibaba Cloud Intelligence president Jeff Zhang said in a statement that the COVID-19 pandemic “has posed additional stress on the overall economy across sectors.” And Alibaba is hoping that the investment would help businesses “speed up the recovery process”.
Alibaba’s cloud division is one of the company’s fastest-growing businesses. And Alibaba’s fourth-quarter revenue increased 62% to 10.7 billion yuan, which is the first time it has topped 10 billion yuan in a single quarter.
In the first quarter, Alibaba’s cloud unit aided the Hangzhou government in launching a digital health monitoring system that rates the exposure to the virus with red, yellow, and green color codes. From there, the system was rolled out across the country.
