Ali Baba It has begun an overhaul of its cloud computing division, bringing veterans into new leadership positions in an effort to revive the unit after it was delisted.
The move underscores the Chinese tech giant's willingness to capitalize on the artificial intelligence boom that relies on infrastructure built by cloud companies.
Alibaba will mainly focus on three business segments in the field of cloud: public cloud, hybrid cloud and cloud infrastructure. Although these groups have existed for some time, Alibaba has appointed new managers to oversee each department and report to the company's top leadership.
Weiguang Liu will lead the public cloud division, a person familiar with the matter told CNBC, who was not authorized to speak publicly, while Jin Li will lead the hybrid cloud division. Both executives will report directly to Alibaba Group CEO Eddie Wu, the people said.
Jiang Wei Jiang leads the Cloud Infrastructure Division and reports to Jingren Zhou, Chief Technology Officer of the Cloud Division.
All three executives are veterans of Alibaba's cloud business. No comment was received from the company.
The Chinese publication Leifeng first reported this news.
The restructuring comes after Alibaba made a surprise move last week to cancel the expected initial public offering of its cloud division, a move that will shave more than $20 billion from the company's value.
This year, Alibaba undertook its largest reorganization in its history, splitting the company into six business units. Daniel Chan stepped down as CEO in September and a few weeks later as head of cloud operations.
Alibaba is facing increasing competition in China's cloud market, especially for state-owned enterprises and public sector customers.
Wu said last week that the company would focus on so-called public clouds, targeting Chinese businesses rather than government customers.
The company will focus on AI in the cloud, as AI applications require large amounts of computing power that cloud computing companies can provide. Alibaba hopes to capitalize on this prospect.
"Cloud Intelligence Group will resolutely implement our strategy to drive growth with AI and prioritize public cloud. We will expand our technology investments in AI-related software and hardware," Wu said.
In the future, the demand for AI will increase the demand for cloud computing, and most AI computing will be done in the cloud.
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