(Bloomberg) — Alibaba Group Holding Ltd. is raising prices for its AI computing and storage products by as much as 34%, in response to demand and rising infrastructure costs.
The company is hiking prices of its T-Head AI computing chips, such as the Zhenwu 810E, by 5% to 34%, the company said in a statement. Its storage service, known as Cloud Parallel File Storage, will also cost 30% more, it said.
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The price hikes emerged after Alibaba launched a major structural revamp this month to focus on monetizing AI. China’s e-commerce leader has introduced a series of products, including an agentic AI service for businesses called Wukong, hoping to tap national enthusiasm for the technology. Alibaba shares rose as much as 3.2% in Hong Kong on Wednesday.
Alibaba joins big tech giants from Alphabet Inc.’s Google to Tencent Holdings Ltd. in efforts to try and monetize AI-related services, responding in part to growing concerns that hefty AI investments aren’t generating adequate returns.
Tencent has taken initial steps to monetize the shift toward agentic AI. Last week, the company announced a more than fourfold price hike for its Hunyuan foundation models on its agent developer platform. At the same time, it began charging for third-party models from startups like Zhipu and Moonshot hosted on its cloud service, ending a free trial period. Google has also recently announced a plan to raise pricing.
Just hours before Alibaba’s announcement, Nvidia Corp. Chief Executive Officer Jensen Huang said the company is firing up manufacturing of H200 AI accelerators for customers in China, a sign of strong demand for AI computing power in the Asian country.
(Updates with share movement in the third paragraph and adds more background from the fourth paragraph.)
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