Alibaba Group Holding and Baidu are raising prices across key cloud services, reflecting growing demand for AI computing and rising infrastructure costs. The increases, effective April 18, follow similar pricing moves by major US cloud providers earlier this year.
Alibaba Cloud will raise prices for services running on its AI chips, including the T-Head Zhengwu 810E, by between 5 and 34 percent. Its Cloud Parallel File Storage service will increase by 30 percent. Baidu Cloud will implement similar adjustments, raising prices for AI computing services by 5 to 30 percent and increasing storage service pricing by 30 percent.
Industry analysts attribute the changes to tightening supply and surging demand for compute capacity. IDC China noted that expanding AI workloads and long-term infrastructure investments are driving cost pressures across the sector. Supply chain constraints, including rising costs for energy, chemicals, and metals, are also contributing to higher pricing.
Global cloud providers have taken similar steps. Google recently raised prices for select networking services, while Amazon Web Services increased rates for machine learning capacity offerings.
Alibaba Cloud led China’s AI cloud market with a 36 percent share in the first half of 2025, according to Omdia.
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