Alibaba's cloud arm Alicloud is collaborating with Nvidia Corporation to boost investment in artificial intelligence and data analysis
Alibaba Group Holding Ltd. is going to be working with the American tech organization, Nvidia Corporation on artificial intelligence and cloud computation, and has planned to enlist around 1000 developers for working on its big-data platform in the upcoming three years. The division of the Chinese e-commerce giant, AliCloud would be making investment in machine learning and data analysis, the company stated on Wednesday.
AliCloud has put $1 billion at stake as it believes that demand for storage and processing from companies and governments would be boosting growth in the upcoming decade as it makes efforts to battle with Amazon.com in the computation industry. Bain & Co has claimed that the investment also reflects Alibaba hunger for processing of information as the online- retail market of China expands to $1.5 billion (10 trillion yuan) by 2020.
The effort made in the field of cloud computation, where services and software are offered to consumers through remote data centers the size of football fields found in the US, prompted Alibaba to establish its second data center in Silicon Valley in last October and develop its first in the European region.
Alicloud is currently expanding its scope beyond basic cloud computation facilities. Chinese Academy of Sciences and the Alibaba’s cloud division jointly established a quantum computation lab to help develop machineries equipped with the capacity to do calculations at a faster pace and safeguard its data centers.
The Chinese online retailer might collaborate with the California based technology company to offer customer support in the fields of high-performance computation and deep-learning, Alicloud stated.
The data compiled by Bloomberg has revealed that Alicloud generates sales revenue by charging fee to clients for utilizing its computation infrastructure. For now, it is contributing to a small part of cumulative revenue, with Internet and computation infrastructure contributing around 3.1% sales in the June quarter.
The business has the potential to contribute over $1 billion to the revenue earned by Alibaba by 2018. SunTrust Robinson Humphrey has revealed that the public cloud is presenting a $120 billion international market opportunity to the online trading giant.
In comparison to that, the revenue of Amazon Web services increased by more than expected 78% to $2.1 billion in the 3rd quarter. Google and Microsoft Corporation are also battling for renting the computation power and data storage that plays a significant role in building Internet-based technologies.
Register has reported that the measure taken by AliCloud is showing players like Microsoft and AWS that Chinese people are about to enter their markets, and Alibaba has quietly established new data centers to support its newly offered services.
No comments:
Post a Comment