AsianFin -- Alibaba Cloud, the cloud computing arm of Chinese tech giant Alibaba (BABA), announced on Tuesday significant price reductions for its large language model offerings, cutting costs by as much as 85%.

The aggressive price cut aims to boost adoption of its AI solutions in an increasingly competitive market. Alibaba Cloud’s large language models, designed for tasks ranging from text generation to customer service automation, are part of its broader push to solidify its position in the global AI and cloud computing industries.

In a statement, the company emphasized its commitment to making cutting-edge AI technologies more accessible to businesses of all sizes. The move is also seen as a strategic effort to compete with rivals like Baidu, Tencent, and international players such as OpenAI and Google.

Market analysts suggest the price adjustment could attract more enterprise customers and spur innovation in sectors like e-commerce, finance, and healthcare. Alibaba’s focus on AI has intensified amid growing demand for generative AI applications and China’s push for leadership in the tech space.

The announcement follows a series of recent updates from Alibaba Cloud, including the expansion of its AI ecosystem and new partnerships to integrate its language models into diverse business operations.