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Zhang said the decision to step down was part of his own plan.

Zhang’s intentions to only focus on cloud now have been some years in the making. In an interview with CNBC in 2018, Zhang said cloud computing will be the company’s “main business” in the future, underscoring his bullishness regarding the technology.

My fellow Aliren,

Since becoming CEO of Alibaba Group in May 2015, it has become my custom to send several letters to everyone every year. As many of you have come to expect when receiving such a letter, it often signals a significant organizational change. Today is no exception. This time, however, the news I’m sharing involves an important personal change.

I am pleased to report that our organizational transformation into the “1+6+N” model has been progressing as planned since we made the announcement. During our most recent earnings announcement, we introduced the board of directors for each of the six major business groups, and these entities are now all fully operational. We also announced plans for a series of significant transactions, which include Cloud Intelligence Group’s full spin-off and listing as an independent company, IPOs for Cainiao Smart Logistics and Freshippo, and external capital raising for AIDC. Alibaba will have a brand-new outlook for the future.

As everyone is well aware, the development of core technologies such as cloud computing, big data and AI will lead to a tremendous transformation of our society and is of utmost strategic significance. Cloud Intelligence Group is now full speed ahead on its spin-off plans and we are approaching a crucial stage of the process, so it is the right time for me to dedicate my full attention and time to the business. From a corporate governance perspective, we also need clear separation between the board and management team as Cloud Intelligence Group proceeds down the path to becoming an independent public company. It would be inappropriate for me to continue serving as Chairman and CEO of both companies at the same time during the spin-off process. Therefore, the Alibaba board of directors has discussed and accepted my plan to transition from the role of Chairman and CEO of Alibaba Group to focus exclusively on my role as Chairman and CEO of Cloud Intelligence Group, effective September 10th 2023. In turn, the Alibaba board of directors has appointed Joseph C. Tsai to succeed me as Chairman and Eddie Yongming Wu to succeed me as Chief Executive Officer. As co-founders and partners of the company, Joe and Eddie have made significant contributions to the company’s development and possess a wealth of invaluable experience. I have every confidence that their leadership will guide Alibaba toward new heights.

This change signifies a new phase and new journey, not only for the company but also for me personally. Time flies, and this year marks my 16th year at Alibaba Group. My appointment as CEO and Chairman of Alibaba Group was beyond my imagination. Being able to fully dedicate myself to the roles for as long as I have is truly due to the trust, support, encouragement, and patience I have received from everyone. For this, I am forever deeply grateful. Due to the historical opportunities that emerged through social progress and market development over the past 16 years, I had the privilege of witnessing the rapid growth of Alibaba and participated alongside everyone in so many achievements from inception to maturation that has impacted people’s everyday lives, enabled the digital transformation of businesses, and made positive contributions to society. Together we withstood the challenges brought about by the pandemic and weathered the uncertainties of the macro environment over the past three years. Through prosperity and adversity, we grew stronger, shared unforgettable experiences, and persevered through it all together. I am grateful for the friendships and bonds forged during this journey that is more valuable and meaningful to me than anything else.

Over the past 24 years, we have initiated self-reinvention many times. Today, we are all standing together at a new starting point, hoping to unlock new growth through self-transformation. I know everyone will continue to support Joe, Eddie, and the new senior management team. I hope everyone will find the best path and platform for themselves. Your self-fulfilment will benefit society and the company, but more importantly, hopefuly will help you discover how to be the best version of yourself. The team at Cloud Intelligence Group and I are also standing on a brand new stage, and we will leverage the power of new technology in cloud computing, big data, and artificial intelligence to serve the digital transformation of enterprises of all sizes and industries and capture the massive potential brought about by AI. I am incredibly eager and excited.

My friends, the landscape may evolve, but the mountains remain and the rivers will continue to flow. Let’s start a new chapter. When we meet again, may we all be carefree!

Daniel Zhang

Alibaba Group Chairman and CEO
Alibaba Cloud Intelligence Group Chairman and CEO
2023.6.20

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Nvidia says U.S. government will allow it to resume H20 AI chip sales to China

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Nvidia says U.S. government will allow it to resume H20 AI chip sales to China

Nvidia CEO Jensen Huang attends a roundtable discussion at the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris on June 11, 2025.

Sarah Meyssonnier | Reuters

Nvidia announced Tuesday that it hopes to resume sales of its H20 general processing units to clients in China, saying that the U.S. government had assured the company would be granted licenses.

Nvidia’s sales of the H20 chips, which had been designed specifically to keep them out of export controls on China, were halted in April.

“The U.S. government has assured NVIDIA that licenses will be granted, and NVIDIA hopes to start deliveries soon,” the company said in a statement.

This comes against the backdrop of a preliminary trade deal between Washington and Beijing last month that sought China to resume rare earth exports and the U.S. to relax tech export controls.

Nvidia CEO Jensen Huang in recent months has ramped up his lobbying against export controls, arguing that they inhibited American tech leadership. In May, Huang said chip restrictions had already cut Nvidia’s China market share nearly in half.

Huang also announced a new “fully compliant” GPU, NVIDIA RTX PRO, saying it was ideal for smart factories and logistics.

The potential change in U.S. stance follows a meeting between Huang and U.S. President Donald Trump last week.

In his meeting with Trump and U.S. policymakers, Huang had reaffirmed Nvidia’s support for the administration’s job creation and onshoring efforts, as well as the aim for America to lead in global AI, the company said.

Meanwhile, in Beijing, it was confirmed that Huang has met with government and industry officials to discuss the benefits of AI and ways for researchers to advance safe and secure AI for the benefit of all. 

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Cognition to buy AI startup Windsurf days after Google poached CEO in $2.4 billion licensing deal

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Cognition to buy AI startup Windsurf days after Google poached CEO in .4 billion licensing deal

In this photo illustration, a man seen holding a smartphone with the logo of US artificial intelligence company Cognition AI Inc. in front of website.

Timon Schneider | SOPA Images | Sipa USA | AP

Artificial intelligence startup Cognition announced it’s acquiring Windsurf, the AI coding company that lost its CEO and several other senior employees to Google just days earlier.

Cognition said on Monday that it will purchase Windsurf’s intellectual property, product, trademark, brand and talent, but didn’t disclose terms of the deal. It’s the latest development in an AI talent war, as companies like Meta, Google and OpenAI fiercely compete for top engineers and researchers.

OpenAI had been in talks to acquire Windsurf for about $3 billion in April, but the deal fell apart, and Google said on Friday that it hired Windsurf’s co-founder and CEO Varun Mohan. Google is paying $2.4 billion in licensing fees and for compensation, as CNBC previously reported.

“Every new employee of Cognition will be treated the same way as existing employees: with transparency, fairness, and deep respect for their abilities and value,” Cognition CEO Scott Wu wrote in a memo to employees on Monday. “After today, our efforts will be as a united and aligned team. There’s only one boat and we’re all in it together.”

Cognition didn’t immediately respond to CNBC’s request for comment. Windsurf directed CNBC to Cognition.

Cognition is best known for its AI coding agent named Devin, which is designed to help engineers build software faster. As of March, the startup had raised hundreds of millions of dollars at a valuation of close to $4 billion, according to a report from Bloomberg.

Both companies are backed by Peter Thiel’s Founders Fund. Other investors in Windsurf include Greenoaks, Kleiner Perkins and General Catalyst.

“I’m overwhelmed with excitement and optimism, but most of all, gratitude,” Jeff Wang, the interim CEO of Windsurf, wrote in a post on X on Monday. “Trying times reveal character, and I couldn’t be prouder of how every single person at Windsurf showed up these last three days for each other and for our users.”

Wu said that the acquisition ensures all Windsurf employees are “treated with respect and well taken care of in this transaction.” All employees will participate financially in the deal, have vesting cliffs waived for their work to date and receive fully accelerated vesting for their, according to the memo.

“There’s never been a more exciting time to build,” Wu wrote.

WATCH: Google snatches Windsurf CEO after OpenAI deal dissolves

Google snatches Windsurf CEO after OpenAI deal dissolves

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Musk’s xAI faces European scrutiny over Grok’s ‘horrific’ antisemitic posts

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Musk's xAI faces European scrutiny over Grok's 'horrific' antisemitic posts

The Grok logo is being displayed on a smartphone with Xai visible in the background in this photo illustration on April 1, 2024. 

Jonathan Raa | Nurphoto | Getty Images

The European Union on Monday called in representatives from Elon Musk‘s xAI after the company’s social network X, and chatbot Grok, generated and spread anti-semitic hate speech, including praise for Adolf Hitler, last week.

A spokesperson for the European Commission told CNBC via e-mail that a technical meeting will take place on Tuesday.

xAI did not immediately respond to a request for comment.

Sandro Gozi, a member of Italy’s parliament and member of the Renew Europe group, last week urged the Commission to hold a formal inquiry.

“The case raises serious concerns about compliance with the Digital Services Act (DSA) as well as the governance of generative AI in the Union’s digital space,” Gozi wrote.

X was already under a Commission probe for possible violations of the DSA.

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Grok also generated and spread offensive posts about political leaders in Poland and Turkey, including Polish Prime Minister Donald Tusk and Turkish President Recep Erdogan.

Over the weekend, xAI posted a statement apologizing for the hateful content.

“First off, we deeply apologize for the horrific behavior that many experienced. … After careful investigation, we discovered the root cause was an update to a code path upstream of the @grok bot,” the company said in the statement.

Musk and his xAI team launched a new version of Grok Wednesday night amid the backlash. Musk called it “the smartest AI in the world.”

xAI works with other businesses run and largely owned by Musk, including Tesla, the publicly traded automaker, and SpaceX, the U.S. aerospace and defense contractor.

Despite Grok’s recent outburst of hate speech, the U.S. Department of Defense awarded xAI a $200 million contract to develop AI. Anthropic, Google and OpenAI also received AI contracts.

CNBC’s April Roach contributed to this article.

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