The Fall, the Silence – and the Great Comeback: How Alibaba Reclaimed Its Place as a Global Tech Giant

Less than three years after Jack Ma disappeared from the public eye and China’s tech titan came under fierce regulatory scrutiny, Alibaba is once again surprising markets. With new leadership, a streamlined strategy, and a bold leap into artificial intelligence, the company is rewriting its narrative – and positioning itself at the forefront of global innovation.

After a period of turmoil, Jack Ma returned with a strategic message that steered Alibaba back on course – this time through cloud computing and AI.

In November 2023, Jack Ma – founder of Alibaba Group and one of the most prominent figures in China’s tech scene – issued an internal memo that sent shockwaves through the company. In a direct and urgent tone, Ma called on the leadership to “correct its course,” following a stretch of intense uncertainty that threatened to derail the tech conglomerate.

Ma, who had largely withdrawn from public view after regulatory clashes in 2020, managed to reignite hope among employees and investors alike. Today, less than a year after that memo, Alibaba is re-emerging as a major force – both in e-commerce and as a rising powerhouse in global artificial intelligence.

Crisis, Fragmentation, and Leadership Overhaul

Alibaba’s downturn began in October 2020, when Ma publicly criticized China’s financial regulators. Days later, the highly anticipated IPO of Ant Group – Alibaba’s fintech affiliate – was abruptly canceled. The offering was expected to raise over $34 billion, which would have made it the largest in history. However, Chinese regulators stepped in at the last minute, citing concerns about the company’s structure.

This marked the beginning of an intense regulatory crackdown on Chinese tech giants, with Alibaba at the center. The company was hit with massive fines, forced to restructure, and subjected to constant oversight – leading to a loss of investor confidence and a slowdown in business momentum.

In March 2023, Alibaba responded with a bold restructuring move: splitting into six independent business units, each with its own ability to raise capital and potentially go public. Yet, the transformation didn’t end there. By June, CEO and Chairman Daniel Zhang stepped down, and within months also left his role as head of the cloud division. He was replaced by Eddie Wu, one of Alibaba’s co-founders, while Joe Tsai was appointed chairman.

A Refocused Strategy: Back to Core, Forward with AI

The new leadership acted swiftly. Wu and Tsai implemented a sweeping efficiency plan that shifted Alibaba’s focus back to its two core pillars – e-commerce and cloud computing – while shedding non-core ventures. They introduced a startup-like management culture that emphasized speed, flexibility, and empowering younger executives.

Artificial intelligence became the company’s new growth engine. Alibaba launched “Qwen” – a suite of open-source large language models capable of generating text, images, and videos. The models quickly gained traction, becoming some of the most downloaded on platforms like Hugging Face.

Rewriting the Narrative: From Setback to Strategic Rebirth

This strategic pivot, combined with shifting political winds in China, yielded quick results. Since the start of 2024, Alibaba’s stock has surged nearly 60%, adding over $100 billion to its market value. In a significant gesture, Chinese President Xi Jinping met with top private sector leaders – including Jack Ma – signaling renewed support for entrepreneurship and innovation.

Still, the real economic opportunity lies in Alibaba Cloud. While Qwen is free and open source, deploying and training models requires high-performance infrastructure. This is where Alibaba monetizes AI adoption – by providing the cloud computing services that power it.

Already, the company’s cloud division has reported accelerated growth, driven by surging demand for AI applications and infrastructure.

Looking Ahead: A Leading AI Player with Global Ambitions

Alibaba is far from the only Chinese tech firm diving into AI – Baidu, Tencent, and others are also launching advanced models. Yet Alibaba’s consistent investments, open-source strategy, and engaged developer community provide it with a strategic edge.

No longer just an e-commerce titan, Alibaba is positioning itself as a major player in the next wave of technological innovation. For investors, this marks a profound narrative shift – from a company viewed as losing market share to one seizing new opportunities in AI and cloud.

In Summary

In just three years, Alibaba has experienced one of the most dramatic transformations in its history – from regulatory turmoil and leadership upheaval to strategic renewal and technological reinvention.

As Joe Tsai, the company’s chairman, aptly put it: “The question isn’t whether we can compete – it’s how fast we can move.”

It seems Alibaba is moving fast – and in the right direction.