Former Alibaba CEO quits cloud business in surprise move during leadership reshuffle

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The former CEO of Alibaba has resigned as head of its cloud computing business in a surprise move as the Chinese e-commerce empire wraps up a leadership reshuffle

FILE - Daniel Zhang, CEO of Alibaba Group, speaks to journalists during Alibaba's 11.11 Global Shopping Festival, also known as Singles Day, in Shanghai, China, Nov. 11, 2018. The former CEO of Alibaba, Daniel Zhang, resigned as head of its cloud computing unit Monday, Sept. 11, 2023, in a surprise move as the Chinese e-commerce empire wraps up a leadership reshuffle.

Alibaba said it will invest $1 billion in a technology fund Zhang will establish to support the firm’s strategies for future growth.In a filing to the Hong Kong stock exchange, Alibaba said that Eddie Wu, its new CEO, will also head its cloud unit. Wu and Alibaba’s new chairman Joseph Tsai assumed their new roles by Monday, with Alibaba saying it has “completed its leadership transition.”

Alibaba expressed its “deepest appreciation” to Zhang for his contributions to the company over the past 16 years.In an internal letter dated Sunday and viewed by the AP, Tsai wrote that Zhang had “expressed his wish to transition away from his role” as chief of the cloud business, and the Alibaba board had “respected and accepted Daniel’s decision.

In May, the company said it aimed for its cloud unit to be listed within the next 12 months. It reaffirmed that plan on Monday. Zhang joined Alibaba in 2007 and is known for creating the company’s annual Singles Day online shopping extravaganza. In 2015, he took over from co-founder Jack Ma as Alibaba's CEO. In 2019 he succeeded Ma as chairman.

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