However, Amazon Web Services, the e-commerce company's cloud branch is more than a Chinese competitor. AWS made $ 6.68 billion in sales in the third quarter.
Amazon's success can succeed in Alibaba: "Alibaba cloud services are currently investing, and are not profitable. As cloud services build a scale, they can be a powerhouse profit to the company, just like AWS is in Amazon, "Garner said.
Alibaba looks at cloud computers as a way of diversifying its business beyond retail – much as Amazon did more than a decade ago. Meanwhile, Alibaba also pushes a strategy called "New Retail," where he attempts to combine his property online with brick and mortar stores. That includes food provision and its own logistics network.
The company also announced plans earlier this year to design its own artificial intelligence chips. Those going into administrators who handle a great deal of data and can help Alibaba as she tries to boost her cloud division.
"Chip is the core of the computer power. So, if you want to plug AI to the business … it's about computer power … so that's why I think we have to digest time on chips, "said Zhang to CNBC.