Alibaba

Xiaohongshu has officially denied rumors of an acquisition by Alibaba, labeling the speculation as “groundless.” This isn’t the first time such rumors have surfaced, with similar claims made in 2019. Xiaohongshu, founded in 2013, has seen its valuation reportedly surge to $26 billion, a significant increase from its previous $17 billion valuation at the end of 2023. Alibaba has not yet commented on the reports.

Alibaba Group CEO announced Ele.me and Fliggy’s immediate integration into the China Digital Commerce Group, aiming to become a comprehensive consumer platform. While maintaining operational independence, they will align with the Group’s goals. This strategic move leverages the success of Taobao Flash Sale, which has seen significant growth and high fulfillment rates, especially during the 618 shopping festival. The consolidation is expected to enhance Alibaba’s consumer services and potentially reshape the retail landscape.

Alibaba is undergoing a significant strategic shift towards AI, spurred by internal reflections on past missteps and the rise of competitors. Executives, including Joe Tsai, admitted to overexpansion and are now laser-focused on AI and cloud infrastructure to regain dominance. This triggered rapid development of the Qwen series, now a top-ranked open-source model, and a massive investment of over 380 billion yuan in AI infrastructure. The company aims to democratize AI through open-sourcing Qwen.