Alibaba’s $20 Billion Loss: The Chip War Fallout

Alibaba just lost a whopping $20 billion because of the chip war between the US and China. It’s like they’re rethinking their whole breakup plan now. The e-commerce giant had planned to list its $11 billion cloud business, but they’re walking back on that now. The reason? US restrictions on chip sales to China. It’s a big deal, and it’s causing a major strategy reset at Alibaba. The company’s top executives, Joseph Tsai and Eddie Wu, who have been with Alibaba since the time of Jack Ma, are saying they need to rethink their whole game plan. Wu, in his first public statement as CEO, pointed out that the US restrictions on chip sales to China are making it really hard for Alibaba to go ahead with its plan to break up the empire Ma built over the years. And it’s not just the cloud business; Alibaba is also putting a hold on listing its popular grocery business Freshippo. It’s a tough call, but it looks like Alibaba is in for a major rethink.