Alibaba Cloud to take on Microsoft Azure and AWS with a $28 billion investment

Alibaba Cloud is the leading cloud computing provider in China with 46.4% marketshare. Tencent Cloud and Baidu Cloud are its main rivals. In other countries around the world, AWS and Microsoft Azure dominate the cloud market. Today, Alibaba Cloud announced that it will invest $28 billion in cloud technologies over the next years. Alibaba will be using this fund for operating system development, semiconductor design and data centre infrastructure development.

Right now, Alibaba’s cloud division is growing very fast. Last quarter, Alibaba reported that its cloud revenue climbed 62% to 10.7 billion yuan ($1.5 billion approx). With the huge capital investment in the coming years, Alibaba will be looking to better compete with AWS and Microsoft Azure in regions outside of China.

Source: Nasdaq