DAMO (Quantum Computing Laboratory)

History

2023: Lab closure due to lack of money

On November 27, 2023, the Chinese technology corporation Alibaba Group Holding announced the closure of the quantum computing research laboratory. This decision is associated with a lack of money and the need to improve financial performance in an unstable macroeconomic situation.

The Quantum Computing Laboratory was part of the DAMO Academy (Academy for Discovery, Adventure, Momentum and Outlook), which was formed as part of Alibaba in 2017 with the aim of developing promising technologies such as artificial intelligence and machine learning. DAMO was supposed to be Alibaba's "most successful" division. Academy specialists conduct research in various fields, including metaverse, robotic systems and semiconductor development.

Alibaba Group Holding announced the closure of the research laboratory of quantum computing

Once the quantum computing lab is wound down, its equipment will reportedly be transferred to Zhejiang University in Hangzhou. Some of the 30 employees of the closed unit will also find a new job here. Others will receive monetary compensation and other due payments.

It is noted that the abolition of the quantum department is part of Alibaba's large-scale business restructuring and optimization program. It was assumed that as part of this initiative, the cloud division will be allocated to an independent structure, which will then go public. However, in mid-November 2023, the company abandoned these plans, saying that the development of the Alibaba Cloud Intelligence Group was negatively affected by the tightened sanctions from the United States. And therefore, the prospects for the cloud business turned out to be uncertain, which could affect customer relationships and limit the company's ability to provide services.^[1]

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