Alibaba Cloud Announces Significant Price Cuts on AI Models

In a bold move to stay competitive in the AI market, Alibaba Group Holding Limited's cloud unit, Alibaba Cloud, has announced a substantial price reduction on its large language models. The prices have been slashed by up to 85%, marking the third price cut this year by the Chinese e-commerce giant.

Strategic Price Reduction to Boost AI Product Demand

The decision to lower prices comes as a strategic effort to boost demand for Alibaba's AI products. This move mirrors similar decisions by competitors such as ByteDance, which recently reduced prices on its new AI model with visual understanding capabilities by 85%. Alibaba's latest price cuts affect its visual language model, Qwen-VL, among others.

Alibaba's History of Price Adjustments

This is not the first time Alibaba has adjusted its pricing strategy to enhance market competitiveness. Earlier in the year, the company reduced prices on some of its core cloud products by up to 55% in February, followed by a staggering 97% price cut on its Qwen AI model in May. These adjustments highlight Alibaba's commitment to making AI technology more accessible and affordable.