Chinese tech giant Alibaba has closed its quantum computing lab, part of its research arm, as the company undergoes a broader restructuring. The quantum lab, along with related experimental equipment, will be donated to state-run Zhejiang University. Alibaba’s in-house research initiative, DAMO Academy, which included the quantum lab, stated that it would maintain its focus on technology research, particularly aiming to lead in artificial intelligence (AI) research.
Zhejiang University plans to recruit affected employees for its own quantum research initiatives. The quantum computing lab and its 30 employees constituted a small portion of Alibaba’s overall research and development team. DAMO Academy, initiated by Alibaba Group in 2017, aimed to explore advanced technologies such as AI and machine learning. Alibaba was one of the first Chinese technology companies to invest in quantum computing technology.
This move is part of Alibaba‘s ongoing internal changes, which began with the company announcing in March its intention to divide its business into six units and spin off its cloud division. However, the spin-off plan was recently scrapped, leading to a $20 billion reduction in Alibaba’s market value. The company’s newly-appointed CEO, Eddie Wu, emphasized that each business unit within Alibaba would operate more independently, undergoing strategic reviews to distinguish between “core” and “non-core” businesses. On Tuesday, Alibaba’s Hong Kong-listed shares were down over 2%.
