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Up to 34%! Alibaba Cloud announces price increase for AI computing power and storage products
On March 18, Alibaba Cloud announced that due to the explosion in global AI demand and supply chain price increases, prices for Alibaba Cloud AI computing power, storage, and other products have increased by up to 34%.
Specifically, this round of price hikes includes a 5%-34% increase in computing cards such as the PingTouGe ZhenWu 810E; the file storage product CPFS (Intelligent Computing Edition) has increased by 30%.
According to informed sources, another major reason for this price increase is the surge in Token usage. During the Spring Festival, AI Agent applications exploded, and Alibaba Cloud’s MaaS business BaLian achieved its highest growth rate from January to March this year. Alibaba Cloud is shifting its scarce AI computing resources toward Token services. This indicates that China’s largest cloud provider, Alibaba Cloud, is adjusting its business strategy—moving from selling computing resources to selling intelligence, based on its self-developed QianWen large model.
On March 16, Alibaba Group established a new business group called Alibaba Token Hub (ATH). ATH includes Tongyi Laboratory, the MaaS business line, the QianWen division, the Wukong division, and the AI Innovation division, covering the full range from foundational model development and model service platforms to AI applications for individuals and enterprises. At the same time, Alibaba will create a unified model service platform called BaLian, which will be offered externally by Alibaba Cloud as a commercial MaaS service.
Wu Yongming stated in an internal letter that day, “We are on the eve of the explosion of AGI (Artificial General Intelligence). A large number of digital tasks will be supported by hundreds of billions of AI Agents, which will run on tokens generated by models, becoming the main carriers of human interaction with the digital world.”
It is also reported that major overseas cloud providers have gradually increased the prices of their core cloud products this year. On January 22, AWS announced a 15% price increase for EC2 used in large model training. On January 27, Google Cloud announced price hikes for data transfer services, AI, and computing infrastructure, with increases of up to 100%.