Chinese technology giants Alibaba and Meitu have announced a major partnership worth US$250 million, marking a significant move for both companies. The deal has sparked strong investor interest, with Meitu’s shares rising nearly 19% on Wednesday to close at HK$7.02—its highest since 2018. Alibaba’s shares also saw a modest rise, ending the day at HK$123.10.
Under the agreement, Meitu, known for its popular photo and video editing apps, has committed to purchasing at least 560 million yuan (approximately US$77.6 million) in cloud computing services from Alibaba over the next three years.
Cloud computing is a way for businesses to access software, data storage, and other resources over the internet—similar to how homes and offices use electricity. This setup allows companies like Meitu to run powerful applications and manage data without having to maintain their own servers.
The deal is more than just a business transaction. It signals the start of what both companies describe as a long-term strategic partnership. By relying on Alibaba’s cloud infrastructure, Meitu aims to improve its technological backbone, especially in areas like artificial intelligence.
Meitu has been gradually expanding its AI capabilities, such as using machine learning to enhance photo filters and facial recognition features. Working closely with Alibaba is expected to give the company better access to advanced computing tools, allowing it to roll out new features more efficiently.
For Alibaba, this partnership is another step in reinforcing its presence in the growing cloud services market. While it is already a leading name in e-commerce, the company has been investing heavily in cloud computing as a future growth area.
A spokesperson for Meitu said the move will help the company “make the most of new opportunities in AI and support long-term development.” Though no further details were given, the statement suggests that Meitu sees this as more than a short-term tech upgrade—it may shape the company’s strategy for years to come.
As both companies explore ways to integrate AI and cloud technology into everyday consumer apps, this deal is likely to draw attention from others in the tech industry watching how such collaborations unfold in China’s digital economy.