r/baba
Alibaba Cloud needs 10x its 2022 compute capacity, says CEO Eddie Wu
Alibaba CEO expects 10x compute capacity by 2033 due to AI, leveraging T-Head chips and opex to expand cloud infrastructure.
- Massive AI-driven demand: Cloud compute capacity needs to grow 10x by 2033 compared to 2022.
- Flexible infrastructure scaling: Utilizing a mix of capex and opex to efficiently acquire computing capacity.
- Vertical integration & new revenue: T-Head chip unit can sell AI servers to other data centers or co-build facilities.
CEO Wu told analysts: "Essentially, I think if you compare where things were in the year 2022 before this explosive growth in AI models and what we expect to need in 2033, I think we're talking about 10x increase. We need 10x the amount of data center infrastructure compared to what we had in 2022. There are different ways to get that compute capacity. Some of it can be capex, part of it can also be opex, and we're actually now acquiring quite a bit of computing capacity using opex."
He added that Alibaba could, with its T-Head chips unit, "actually also sell AI servers leveraging those chips to other computing centers, or we can co-build computing centers with others."
$$$ more spending