Alibaba Cancels Cloud Spinoff, Blames US Chip Sanctions (theregister.com) 11
Alibaba is canceling the scheduled IPO of its cloud division due to the impact of the U.S. government's CPU export bans to China. The Register reports: The Chinese e-commerce giant reported the move alongside its calendar Q3 earnings, otherwise a generally positive quarter, with the group reporting an income from operations of $4.6 billion, up 34 percent year-on-year, and revenue of $30.8 billion, up 9 percent. Alibaba also said US export restrictions could affect its business more generally by making it harder for the company to upgrade its existing hardware. [...] It's worth noting that the Cloud Intelligence Group brought in $3.789 billion in revenue but earnings before income tax and amortization was $193 million, up 44 percent on the same period a year earlier. Cloud sales growth has stalled in 2023 as customers weigh up their spending.
"We believe that these new restrictions [referring to expanded restrictions announced in October] may materially and adversely affect Cloud Intelligence Group's ability to offer products and services and to perform under existing contracts, thereby negatively affecting our results of operations and financial condition," Alibaba said. "We believe that a full spin-off of Cloud Intelligence Group may not achieve the intended effect of shareholder value enhancement," the company added. "Accordingly, we have decided to not proceed with a full spin-off, and instead we will focus on developing a sustainable growth model for Cloud Intelligence Group (CIG) under the fluid circumstances."
"The US needs to stop politicizing and weaponizing trade and tech issues and stop destabilizing global industrial and supply chains," Chinese Foreign Ministry spokesperson Mao Ning said in response to the US's new restrictions.
"The US needs to stop politicizing and weaponizing trade and tech issues and stop destabilizing global industrial and supply chains," Chinese Foreign Ministry spokesperson Mao Ning said in response to the US's new restrictions.
Bah (Score:1)
Re: (Score:2)
However, their ongoing competitiveness and in fact promised road maps for customers probably cannot be met with the old chips. Seems a perfectly reasonable consequence of the sanctions, and in fact the whole point. If Alibaba's capability is not at all impacted, then the sanctions would be pretty pointless right?
"The US needs to stop politicizing and..." (Score:2)
Oh yea? Well then maybe you should stop threatening to carpet-bomb Taiwan for insubordination.
Re: (Score:3)
The US needs to... (Score:1, Insightful)
They need to do what's best to protect their industrial presence from the morass of corruption and industrial/technological thievery that is is China.
The only reason the Chinese tech and industrial sectors are where they're at right now (as opposed to 1980) is rampant abuse of industrial and economic espionage.
And you know what?
The thieving fucksticks in CHINA need to stop politicizing and weaponizing trade themselves.
You are NOT going to get shit for free.
Re: (Score:2)
They didn't steal anything? That's not what the FBI says: https://www.fbi.gov/investigat... [fbi.gov]
Re: (Score:3)
They didn't steal anything. They just looked at ideas and turned them into products.
False. Americans (and others) design products and have them built in China, then the factory makes many more than they were contracted to, slaps a bunch of randomly generated names on them, and sells them.
Not everything made in China follows this pattern. They do in fact design and manufacture their own goods. They simply also do the other thing. One of my friends had it happen to him with a vape product. Once they had production going they stopped selling to him entirely. He put his savings into getting th