HONG KONG -- Alibaba Group Holding has reversed a plan to fully spin off its cloud unit, the company said Thursday, in a surprise move that the Chinese group attributed to tougher U.S. controls on chip technology.
"The recent expansion of U.S. restrictions on export of advanced computing chips has created uncertainties for the prospects of Cloud Intelligence Group. We believe that a full spinoff of Cloud Intelligence Group may not achieve the intended effect of shareholder value enhancement," the company said.
