Jack Ma Returns to Alibaba, Targets Cloud & AI Dominance

 

As per individuals who are aware of the company, Jack Ma, Alibaba's co-founder, has returned to a more active position within Alibaba, his most direct role with the company since stepping down as chairman in 2019.

Alibaba, the China tech giant and Ecommerce Company based in Hangzhou, has seen Ma retreat from public view since an antitrust investigation commenced in late 2020, which led to increased regulatory scrutiny of China's tech companies.

According to reports, Ma has been consulted on major decisions facing Alibaba, and is believed to be recommending spending as much as 50 billion yuan (US$7 billion) on subsidies to compete with JD.com and Meituan.

Ma is also seeking frequent updates on Alibaba's artificial intelligence strategy and the company's cloud business.

Key Highlights

• Jack Ma returns to Alibaba’s leadership role, advising on strategy and $7B subsidies to rival JD.com and Meituan.
• Alibaba boosts AI and cloud business in China focus with 26 percent cloud revenue growth despite market cap decline.
• Alibaba holds 43 percent of China’s food delivery market, closely competing with Meituan’s 47 percent share.

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As of July, Alibaba's share of the Chinese food delivery market was 43 percent, according to Goldman Sachs, while in contrast Meituan holds a market share of 47 percent. Alibaba also announced an increase of 26 percent in cloud revenue in August; however, its market cap is still less than half of its peak level.