Alibaba Cloud Cuts LLM Prices for Third Time in 2024
On December 31, Alibaba Cloud announced a significant price reduction for its large language model services, marking the third such cut in 2024. The update specifically targets the Tongyi Qianwen visual understanding model, with access costs dropping by over 80% across the board. This follows previous reductions on February 29, which was recorded as the largest price cut in the company's history affecting more than 100 products, and another adjustment on September 19 for three main Tongyi Qianwen models. Despite these aggressive pricing strategies, Alibaba Cloud reported robust financial performance. Its overall revenue, excluding income from consolidated businesses, grew by more than 7% year-on-year. This growth was primarily driven by double-digit expansion in public cloud services and a surge in the adoption of AI-related products. Notably, revenue from AI-related products has achieved triple-digit year-on-year growth for five consecutive quarters, indicating strong market demand and successful integration of AI technologies into their cloud infrastructure offerings.
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Alibaba Cloud Cuts LLM Prices for Third Time in 2024
On December 31, Alibaba Cloud announced a significant price reduction for its large language model services, marking the third such cut in 2024. The update specifically targets the Tongyi Qianwen visual understanding model, with access costs dropping by over 80% across the board. This follows previous reductions on February 29, which was recorded as the largest price cut in the company's history affecting more than 100 products, and another adjustment on September 19 for three main Tongyi Qianwen models. Despite these aggressive pricing strategies, Alibaba Cloud reported robust financial performance. Its overall revenue, excluding income from consolidated businesses, grew by more than 7% year-on-year. This growth was primarily driven by double-digit expansion in public cloud services and a surge in the adoption of AI-related products. Notably, revenue from AI-related products has achieved triple-digit year-on-year growth for five consecutive quarters, indicating strong market demand and successful integration of AI technologies into their cloud infrastructure offerings.
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