In Hong Kong, Alibaba Cloud has announced its most substantial price cut to date, reducing prices for some products by as much as 55%. This move comes in response to heightened competition, particularly in attracting heavy users, especially artificial intelligence (AI) software developers. The cloud arm of Alibaba Group Holding had previously implemented price cuts of up to 50% in April of the previous year.

Alibaba Cloud revealed plans to lower prices for over 100 products by an average of 20%, as part of its ongoing efforts to entice developers to utilize its cloud services for building data-intensive AI models and applications. The aim is to maintain a competitive edge in the market.

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Rivals such as Tencent Holdings and Huawei Technologies had also reduced cloud prices in the past year, following Alibaba’s lead. These companies, in their pursuit of tech companies to develop AI within their ecosystems, offered various promotions to attract customers.

Currently holding about one-third of the local market, Alibaba Cloud’s aggressive price-cutting strategy is viewed as a significant move to court customers, as it even applies to undelivered orders for existing customers, breaking from the norm, according to industry analysts. The intense competition among these major players underscores the growing demand for cloud services and AI development in the tech industry.