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454 Why Alibaba’s Cloud Ambitions Fell to Earth

The Information
Juro Osawa @ The Information · 11/30/2023 09:00 EDT

Why Alibaba’s Cloud Ambitions Fell to Earth

Several months ago, executives at Alibaba tried to persuade some big investors to take a stake in its cloud unit—which Alibaba was then planning to spin off as a separate company—at a $40 billion valuation. Alibaba’s idea was that the outside investments could signal to the stock market the appeal of the cloud unit ahead of its public debut.

The plan flopped. Investors balked at the valuation Alibaba sought. They were conscious that the cloud business—though the biggest of its kind in China—was barely grow

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