Alibaba shuts down quantum computing unit to focus on AI research
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Chinese technology giant Alibaba (NASDAQ: BABA) has drawn the curtain on its quantum computing unit as part of a broader restructuring effort, weeks after abandoning the launch of a widely anticipated cloud business. Reuters reported, the company’s decision to shut down its quantum computing unit will see it donate its lab and equipment to Zhejiang University as it sets its sights on new frontiers. The shuttering of the unit is expected to affect up to 30 individuals with Alibaba stating that a large majority of the affected employees may be absorbed by Zhejiang University. Alibaba says the 30 roles represent only a small slice of its research and development team, confirming that it will throw its weight into other emerging technologies like generative artificial intelligence. The company did not give exact reasons for shutting down its quantum computing arm, but pundits say that the move may be linked to the macroeconomic uncertainties triggered by the U.S. ban on semiconductor trade with China. The decision has spoiled China’s quantum computing plans as North America, Europe, and Southeast Asia ramp up investments in the sector. Since 2015, Alibaba has played a prominent role in the quantum computing space via its Quantum Lab Academy, an in-house research initiative. The company has reportedly splurged nearly $15 million in emerging technology research, with a large portion of the funds deployed toward quantum computing. The decision to shut down the unit is the latest in many internal restructuring events since the start of the year. In March, the company disclosed that it will split its businesses into six units operating independently, laying off over 30,000 employees in 2022. Alibaba’s troubles were underscored after it announced the scrapping of the plans to roll out a new cloud business in mid-November. Following the announcement, the company’s shares tumbled…
Filed under: News - @ December 3, 2023 4:26 am