Dj Alibaba Group Holding Stock Slips 2.4% In Hong Kong

By Jiahui Huang

Alibaba's logistics arm is merging its autonomous-driving unit with a Chinese robovan company, creating a business valued around $2 billion.

Under the deal, Alibaba's Cainiao unit will get a stake in robovan specialist Zelos Technology, which will run the merged entity, the companies said Thursday.

The Wall Street Journal had reported on the deal earlier.

The unmanned-vehicle segment operated by Alibaba's e-commerce logistics subsidiary Cainiao will be folded into Zelos, the statement said.

Zelos will operate both brands simultaneously, and Cainiao will stop producing or selling unmanned vehicles.

Some managers and technical staff from the Alibaba subsidiary will join Zelos, the statement showed.

According to people familiar with the matter, a Cainiao executive will also join the robovan maker's board, and the partnership will put Zelos's value at around $2 billion.

The deal advances Alibaba's efforts to streamline its sprawling tech empire. The conglomerate has been sharpening its focus on its core e-commerce and artificial-intelligence businesses--its biggest revenue drivers.

Last year, Alibaba announced a plan to fold food-delivery and online-travel services into its e-commerce unit as competition stiffens in the Chinese market.

Cainiao has been consolidating too, as it focuses on expanding supply-chain operations overseas. In July, the group sold its domestic express-delivery service to long-term partner STO Express.

The latest divestment would come at a time of heightened competition in China's autonomous-driving industry, as driverless technology gains traction in passenger cars and delivery vehicles alike.

Technology companies and startups are competing for a share of the multibillion-dollar market for robotaxis, buses and other autonomous vehicles. Macquarie has estimated that by 2035, robotaxis could account for about 45% of shared mobility rides in China, representing a roughly $68 billion market.

The "Big Three" of China's robotaxi sector--Baidu, WeRide and Pony AI--have focused on deploying self-driving cabs that transport passengers, while companies such as Zelos and Neolix have concentrated on driverless last-mile delivery.

Founded in 2021 by Kong Qi, a veteran of Baidu's and JD.com's autonomous driving units, Zelos provides robovans for delivery and grocery companies, among others. The company is backed by investors including Ant Group, Blue Lake Capital and CDH Investments.

Suzhou-based Zelos has reported strong revenue growth since 2023. Its fleet expanded to more than 17,000 vehicles last year from about 200, and Zelos now operates in more than 300 Chinese cities. It also has partnerships overseas, including with Singapore Post, DHL and Dubai's Roads and Transport Authority.

After the merger, the Zelos-Cainiao fleet would have more than 20,000 robovans across both brands, people familiar with the matter said.

Write to Jiahui Huang at jiahui.huang@wsj.com

By Tracy Qu

Alibaba Group has secured several high-profile entities, including State Grid Corp. of China, XPeng and the Chinese Academy of Sciences, as clients for its new AI chip, according to a person familiar with the matter.

The company's Zhenwu 810E chip, which is designed for both training and inference, has more than 400 clients. It has also been used internally for training Alibaba's Qwen models, according to the source.

The Wall Street Journal first reported on Alibaba's development of the new chip in August.

This comes as Chinese tech companies step up efforts to develop homegrown technologies amid a more challenging geopolitical environment.

Investor interest in domestic chip development is high. Shares of Chinese AI chip startups Moore Threads and MetaX have soared since their blockbuster debuts in December.

Write to Tracy Qu at tracy.qu@wsj.com