Published 4 days ago • loading... • Updated 3 days ago

Alibaba Cloud Lifts Prices, Blames AI and Hardware Costs

Alibaba Cloud announced on Wednesday it will raise prices for AI computing and storage services by up to 34% starting April 18, 2026, citing surging global AI demand and rising supply chain costs.
Increased pressure on supply chains due to the recent AI boom has driven up procurement costs for core hardware including CPUs, GPUs, memory chips and storage, forcing the adjustment across services.
Cloud Parallel File Storage prices will rise by 30 per cent, while higher-end GPU instances face increases of 25 to 34 percent, though dozens of services see smaller increases of around 5 percent including PolarDB.
Baidu Cloud announced Wednesday matching increases of 5 to 30 per cent for AI computing services, while AWS implemented a 15 percent hike in early January and Microsoft 365 has become more expensive in recent months.
Global semiconductor revenue is projected to hit $1 trillion in 2026 per Omdia, suggesting sustained cloud price growth, though Alibaba noted customers who purchased services before April 18 will retain current pricing until their next renewal cycle.

Insights by Ground AI

11 Articles

Alibaba Group Holding Raises AI Service Fees By 34%

(HONG KONG) — Alibaba Group Holding Ltd. has announced a significant price hike for its artificial intelligence and data storage services, with increases reaching up to 34%. The Chinese e-commerce and technology giant cited robust growth in demand and the escalating costs of developing the necessary underlying infrastructure as the primary drivers behind the move.The price adjustments specifically target Alibaba’s AI computing chips under its T-…

3 days ago·Dubai, United Arab Emirates (the)

Read Full Article