TOP BIT
Alibaba’s biggest fail: The mascot. Even a German fifth-tier football club has a better one…
Alibaba is ditching its premium supermarkets to pour billions into artificial intelligence. The group is abandoning its US-inspired food-subscription model and instead investing heavily in AI research, healthcare services, and new intelligent customer programs.
The goal: to challenge global tech giants like Google and Meta and establish itself as a leading AI company.
The Details
🛒 Shutting Premium Stores: By the end of August, Alibaba will close all remaining Hema X outlets—China’s answer to Costco—to cut costs and reallocate resources.
🧑‍💻 Super-Membership Program: Alibaba will bundle platforms like Taobao, food delivery service Ele.me, and travel portal Fliggy into one central membership program to deepen customer loyalty and offer cross-service benefits.
💻 $53 Billion AI Push: By 2028, Alibaba will invest $53 billion in AI innovations such as its “Qwen” language model and massively expand its cloud network in Malaysia, South Korea, and Mexico.
🗺️ World’s First AI-Native Map: With “Amap 2025,” the first fully AI-driven mapping app, Alibaba is turning navigation into a proactive, intelligent travel experience. The AI “Xiao Gao” plans personalized routes, factors real-time weather and traffic, and offers spontaneous recommendations.
🏥 AI in Healthcare: Alibaba’s DAMO Academy is partnering with clinics like Beijing United Family Hospital to deploy the “One Sweep Multi-Check” AI-screening system for rapid, reliable cancer and chronic disease diagnoses.
Why It Matters
AI Focus: Alibaba is making a radical shift from traditional retail to technology and AI leadership.
Global Competitiveness: Massive investments position Alibaba to compete head-to-head with giants like Google, Meta, and Amazon.
Future-Proof Diversification: New AI and health ventures reduce Alibaba’s reliance on volatile consumer and retail markets.
Background
Closing the premium supermarkets follows Alibaba’s ongoing restructuring since 2023 toward more profitable, less capital-intensive businesses. Alibaba currently holds over 30 percent of China’s cloud market and aims to grow further through AI-powered services and global partnerships.
đź“ŠÂ All Data & Details:Â SCMP, Caixin, Bloomberg
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