Alibaba abandons split of its cloud business and dives into New York

on Wall Street. As part of the publication of its quarterly accounts, the e-commerce giant announced that it was abandoning the spin-off and listing of its cloud business. To blame are U.S. chip export restrictions, which have made it harder for Chinese companies to obtain critical supplies of chips from U.S. companies. This creates “ uncertainties about Cloud Intelligence Group’s prospects ”, indicated the company and that “ this may therefore not create value for shareholders ».

This decision to abandon the split of its cloud division certainly marks a halt in Alibaba’s plan to reorganize itself into six individual units, which constituted one of the largest transformation projects of the company since its creation . That of listing the smart logistics division Cainiao in Hong Kong remains on the table, while that relating to the Freshippo grocery retail chain is on hold, pending an assessment of the conditions of walk.