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Alibaba Tied with Nvidia on Cloud Computing Services


Alibaba will work with Nvidia Corp. on cloud computing and artificial intelligence, and planning to recruit approximately 1,000 developers to work on its big-data platform within the next three years.

It said in a statement Wednesday, the arm of China’s largest e-commerce operator, known as AliCloud, will increase investment in data analysis and machine learning.  AliCloud is risking $1 billion on the confidence that needs for processing and storage from governments and companies will increase development during the next decade as its tries to compete with Amazon.com Inc. in computing services.

According to Bain & Co. The investment also imitates Alibaba’s own desire for info processing as China’s online-retail market develops to 10 trillion yuan ($1.5 billion) by the year 2020. The drive into of cloud computing, where software and services are given to customers through remote data centers, the size of American football fields, encouraged Alibaba to open its second data center in Silicon Valley in October and prepare its first in Europe.

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“AliCloud’s rate of growth is one of the fastest among global peers,” Simon Hu, the division’s president, said during a presentation in Shanghai. “Apart from being fast-expanding in Asia, we will also maintain our growth in Europe and the Middle East.”

Quantum Computing

AliCloud is now spreading its scope further than basic cloud-computing services. It co-founded a  quantum computing laboratory with the Chinese Academy of Sciences to assist protect its data centers and develop machines capable of even quicker calculations. The company will join forces with Santa Clara, California-based Nvidia to give customer support in the areas of  deep learning and high-performance computing, AliCloud said in a statement.

AliCloud produces income generally by collecting clients a fee for using its computing infrastructure. For the time being, it contributes a simple sliver of total income, with computing and Internet infrastructure accounting for 3.1% of sales in the June quarter, according to the reports..

The business could account for over $1 billion of Alibaba’s income by 2018 and the public cloud presents a $120 billion worldwide market opportunity, according the sources. By comparison, Amazon Web Services’ income increase a better than anticipated 78% to $2.1 billion in the third quarter.

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“Microsoft Corp. and Google Inc. also are competing  to rent the data storage and computing power that are the building blocks of Internet-based systems.” According to source.

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