New Alibaba CEO Eddie Wu to sharpen focus on AI and customers amid leadership reshuffle and spin-off process

The two major strategic focuses of the Hangzhou-based tech giant will be ‘user first’ and ‘AI-driven’, new CEO Eddie Wu writes in a letter to staff

Wu, who also took over as head of Alibaba’s cloud unit after Daniel Zhang’s exit, says firm will promote more young employees to leadership roles

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An Alibaba sign is seen outside the company’s office in Beijing. Photo: AFP

Tracy Quin ShanghaiandAnn Caoin Shanghai

Published: 12:00pm, 12 Sep 2023Updated: 7:06pm, 12 Sep 2023

Alibaba Group Holding will sharpen its strategic focus on two main themes, “users first” and “artificial intelligence-driven”, as the Chinese tech giant grapples with growing competition and a shifting internet landscape, according to new group CEO Eddie Wu Yongming.

“As traditional internet models become increasingly homogeneous and face the competitive pressures of saturation, new technologies such as AI are emerging as the new engine of global business growth,” Wu, who assumed his new role on Sunday, wrote in an internal letter sent to employees on Tuesday.

“We will recalibrate our operations around these two core strategies and reshape our business priorities,” he said.

As part of its business transformation, Alibaba, owner of the South China Morning Post, intends to strengthen strategic investments in three areas: technology-driven internet platforms, AI-driven tech businesses and global commerce networks, Wu said.

Alibaba’s shares extended a decline on Tuesday, closing 2 per cent lower at HK$86.3 amid weak market sentiment.

Daniel Zhang Yong (centre) has handed over the reins of Alibaba to chairman Joe Tsai (right) and CEO Eddie Wu Yongming (left). Photo: Handout

The letter comes two days after Wu took over as acting chairman and CEO of Alibaba Cloud Intelligence Group following the surprise exit of former group chairman and CEO Daniel Zhang Yong. Until Sunday, Zhang had been expected to stay on to head the cloud business after handing the chairmanship of the parent company to co-founder Joe Tsai.