2025 CES文章顶部

Alibaba Shares Slump Over 9% after Cloud Unit Spinoff Shelved Due to US AI Curb

Alibaba said it will focus on "developing a sustainable growth model for the cloud unit under the fluid circumstances". Another Alibaba unit Freshippo's IPO plan has been put on hold as the company evaluate market condition.

BEIJING, November 16 (TMTPost)— The U.S.-listed shares of Alibaba Group slumped as much as 10% and settled about 9.1% lower Thursday after Chinese internet giant disclosed the spinoff plan of its cloud unit was shelved, highlighting elevated uncertainty that Chinese firms are facing amid increasing U.S. tech curbs.

Credit:Visual China

Credit:Visual China

In a report about the financial results for the third quarter, Alibaba said it decided not to proceed with a full spinoff of Cloud Intelligence Group as the recent expansion U.S. export restrictions on advanced computing chips has created uncertainties for the unit’s prospects. The Hangzhou-based company believes the spinoff may not achieve the intended effect of shareholder value enhancement, according to the report.

The aforementioned U.S. move is a new rule introduced October 18, with an aim to limit China’s access to advanced semiconductors that could fuel breakthroughs in artificial intelligence (AI) and sophisticated computers. The rule was supposed to come into effect following a 30-day public comment period. But AI chip giant Nvidia said on October 25 that the U.S. government informed the licensing requirements, which is applicable to its products having a “total processing performance” of 4800 or more and designed or marketed for datacenters, were effective immediately.

Alibaba, at the financial report released on Thursday, warned the new export control “may materially and adversely affect” the cloud unit’s ability to offer products and services and to perform under existing contracts, thereby negatively affecting the company’s results of operations and financial condition. “These new restrictions may also affect our businesses more generally by limiting our ability to upgrade our technological capabilities,” the company said.

While scrapping the spinoff plan of Cloud Intelligence Group, including cloud, AI, DingTalk and other businesses, Alibaba reiterated its commitment to AI. It said it will focus on "developing a sustainable growth model for the cloud unit under the fluid circumstances".

“Circumstances have changed”, so the company now focus on how to grow the cloud business, and a big part of it is “to provide cash to make investments, because in the AI-driven world, develop a full-blown business based on a very networked and highly scaled infrastructure, it requires investment,” Alibaba Chairman Joseph Tsai told analysts at an earnings call Thursday.

Answering a question about the sustainable growth model for the cloud business at the call, Alibaba CEO Eddie Wu said his company will focus on public cloud for the CPU-centered trational cloud computing business. Moreover, Wu said Alibaba is well prepared to provide great value to the Chinese market amid a transition to GPU-based AI computing, because it has always been supporting one cloud with multiple chips and it has these different layers platforms as a service infrastructure, which is able to support heterogeneous architecture at all of these different levels.

At the report, Alibaba disclosed the plan for initial public offering (IPO) of another arm-- Freshippo (Hema), a grocery stores operator under the China commerce segment, has been put on hold as it evaluates market conditions and other factors would contribute to a successful transaction to boost shareholder value.

The recent disclosure suggests Alibaba sharply reversed from the listing efforts following its largest ever restructuring earlier this year, and will have only one arm to go public in the near term.

Alibaba announced late March that it decided to split into six business groups, including Taobao Tmall Group, Alibaba International Digital Commerce Group, Local Services Group, Cainiao Smart Logistics Network Limited, Cloud Intelligence Group, Digital Media and Entertainment Group. Five of these major business groups have the flexibility to raise external capital and potentially to seek its own IPO, with the exception of Taobao & Tmall Group, which remains wholly-owned by Alibaba Group. Each business group is fully responsible for its performance, with financial independence.

Alibaba said in May that its board of directors approved a full spin-off of the Cloud Intelligence Group via a stock dividend distribution to shareholders, aiming to complete the breakup in the next 12 months and make the group an independent publicly listed firm.  Listing plans about two other business groups also got the nod from Alibaba’s board in May. Freshippo was approved to execute an IPO, and expected to be completed in the next 6 to 12 months. Cainiao was approved to explore an IPO with the target to complete the deal in the next 12 to 18 months.

Alibaba announced late September that it has submitted a plan to spin off Cainiao to the Hong Kong Stock Exchange (HKEX). A prospectus released in the meantime showed Cainiao has applied for IPO in Hong Kong, with Citigroup Inc, Citic Securities Co., Ltd and JPMorgan Chase & Co as joint sponsors.

转载请注明出处、作者和本文链接
声明:文章内容仅供参考、交流、学习、不构成投资建议。
想和千万钛媒体用户分享你的新奇观点和发现,点击这里投稿 。创业或融资寻求报道,点击这里

敬原创,有钛度,得赞赏

赞赏支持
发表评论
0 / 300

根据《网络安全法》实名制要求,请绑定手机号后发表评论

登录后输入评论内容

快报

更多

2025-01-15 23:03

新开发银行发行60亿元5年期熊猫债

2025-01-15 23:02

国内期货主力合约涨多跌少,BR橡胶涨近4%

2025-01-15 22:56

12家上市公司股票获回购,健康元回购金额最高

2025-01-15 22:55

上海市人大代表陈娟玲:建议推进化妆品新原料与关联产品同步申报

2025-01-15 22:51

统一股份:全资子公司统一石化拟公开挂牌增资扩股,预计构成重大资产重组

2025-01-15 22:50

美股持续走高,纳指涨幅扩大至2%

2025-01-15 22:49

本田美国公司预计2025年汽车销量将增长约5%

2025-01-15 22:47

美国太空探索技术公司发射“猎鹰9”运载火箭

2025-01-15 22:41

美股科技股、机器人、加密货币概念股全线冲高

2025-01-15 22:32

美股开盘:三大指数均涨超1%,量子计算概念股走强,银行股绩后普涨

2025-01-15 22:22

6家上市公司股票遭重要股东减持,天虹股份减持金额最高

2025-01-15 22:21

机构:预计美债收益率在未来12个月内可以达到5.25%至5.50%

2025-01-15 22:06

美国密集出台涉华贸易限制措施,商务部:打压无法阻挡中国前进

2025-01-15 22:03

上海市人大代表王颉鸣:正向激励提供生育友好岗位的企业

2025-01-15 22:02

豫园股份:获1.8亿元回购公司股份专项融资支持

2025-01-15 21:58

1月15日美股盘前要闻

2025-01-15 21:52

欧洲主要股指扩大涨幅,德国DAX指数现涨约1.5%

2025-01-15 21:50

比特币向上触及99000美元

2025-01-15 21:50

现货白银日内涨幅扩大至1%

2025-01-15 21:47

紫金矿业:公司及在疆部分权属企业被列入UFLPA实体清单

扫描下载App