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Up 34% at Peak! Alibaba Cloud Raises Prices, Upgrading from Selling Computing Power Resources to Selling Intelligence
Just now, Alibaba Cloud announced on its official website: Due to the explosive global demand for AI and rising supply chain costs, Alibaba Cloud’s AI computing power, storage, and other products will increase in price by up to 34%.
This round of price increases includes: the PingTouGe ZhenWu 810E computing card products rising by 5%-34%; the file storage product CPFS (Intelligent Computing Edition) increasing by 30%.
According to informed sources, another major reason for this price hike is the “surge in Token usage.” During the Spring Festival, AI Agent applications exploded, and Alibaba Cloud’s MaaS business, Bailian, achieved its highest growth rate from January to March this year. Alibaba Cloud is shifting its scarce AI computing resources toward Token services.
This means that Alibaba Cloud, China’s largest cloud service provider, is adjusting its business strategy—shifting from selling computing resources to selling intelligence—by leveraging its self-developed Qianwen large model.
Two days ago, Alibaba Group established a new business group called Alibaba Token Hub (ATH), which includes Tongyi Laboratory, the MaaS business line, Qianwen Business Department, Wukong Business Department, and AI Innovation Department, 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, Bailian, which will be offered externally by Alibaba Cloud as a MaaS commercialization service.
Alibaba Group CEO Wu Yongming stated in an internal letter: “We are currently on the eve of an AGI explosion. A vast 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.”
This year, major overseas cloud providers have also raised the prices of their core cloud products. 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%.