- Prices for AI computing products will rise by 5% to 34%, and file storage products will increase by 30% starting April 18.
- Pricing pressure on core hardware procurement costs from the AI boom is being passed on to users.
Alibaba Cloud announced it will raise prices for its AI computing and storage products, driven by explosive global demand for artificial intelligence and a significant increase in supply chain costs.
Starting April 18, 2026, prices for computing products such as the T-Head Zhenwu 810E will rise by 5% to 34%, while the CPFS file storage product will see a 30% increase, according to a statement released by Alibaba Cloud on Wednesday.
The price adjustment highlights the impact of the AI boom on core hardware procurement costs, as supply chain pricing pressures continue to be passed on to users.
A surge in token usage for large language models is another core reason prompting Alibaba Cloud's decision to hike prices significantly, local media outlet Cailian reported Wednesday, citing people familiar with the matter.
From January to March, Alibaba Cloud's MaaS (Model as a Service) platform, Bailian, recorded its highest-ever growth rate, further exacerbating the strain on its cloud infrastructure.
Faced with growing market demand, Alibaba Cloud is currently prioritizing its scarce AI computing resources for its high-growth token business.
Alibaba Cloud's price hike is not an isolated case. China's broader AI industry is currently facing severe challenges regarding computing power supply-demand imbalances and cost control.
Last month, startup Zhipu AI also encountered severe computing shortages due to surging demand for its new-generation flagship model, GLM-5, prompting the company to seek industry chain partnerships.
Computing bottlenecks are breaking the large model industry's previous convention of "price wars," with Zhipu having already hiked its API call prices by up to 100% on February 12.
