Alibaba Spurs Price War in Cloud Computing With Steep Cuts
- JD.com took less than a day to respond to Alibaba’s move
- The cloud is emerging as a key AI battlefront in China
This article is for subscribers only.
JD.com Inc. took less than a day to respond to Alibaba Group Holding Ltd.’s price cuts in cloud computing services with its own sharp reductions, an aggressive round of competition that will benefit customers and erode profits at China’s leading technology companies.
Alibaba began slashing prices by as much as 55% on more than 100 services Thursday in a bid to win back customers in the hotly contested market. JD.com, a rival in e-commerce and cloud services, responded later the same day with its own round of price cuts, unveiled on the company’s WeChat account. Alibaba’s stock fell as much as 1.9%, while JD was little changed.