Alibaba Technology Jeff Zhang, Chief Technology Officer, WORLD-CLASS PROBLEMS DRIVE WORLD-CLASS WORLD-CLASS TECHNOLOGIES RESHAPE WORLD-CLASS TECHNOLOGIES BUSINESSES

2 Infrastructure Supports Alibaba’s Global E-commerce Ecosystem

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Available in 49 Regions around the World 200+ Data Centers Servers Immersion Cooling Networks FPGA-based Accelerators Power Usage Efficiency (PUE) Approaches 1.0 Speed is Boosted from 100 Gbps to 400 Gbps Self-developed AliFlash V3 The World’s First Immersion Cooling The Only IPv6 Cloud Service Vendor in China Internet Server Cluster

Note: 1. As of August 31, 2018 3 Cluster Scheduling System Enhances Resource Efficiency

Resource Management System

Sigma Online Tasks Fuxi Offline Tasks

(1) (1) 17% % Reduction in IT Cost per 10k Transactions 45 Data Center Clusters Average CPU Utilization Rate of Clusters on the Single’s Day Shopping Festival

Note: 1. As of Aug 2018 4 Self-Developed, Full Stack Technologies and Solutions for Database and Storage Systems Network Shared Nothing Network Shared Storage

(1) Worker Worker Worker Worker (1) Worker Worker Worker Worker Disk Disk Disk Disk Disk 6x MySQL Scale UP 10+ Read and Write Throughputs of PolarDB Scale Out OLTP OLAP Data Sources Analyzed by Data Lake Analytics PolarDB X-DB Data Lake Analytics HTAP AnalyticDB (2) DRDS Multi-model (1) HybridDB 325,000 TSDB 100+ PB Sales Transactions per Second VectorDB Real-time Processing Capability of AnalyticDB TAIR DADI Peak Throughput of X-DB No-SQL PANGU Distributed Memory Lindorm Distributed Storage Services Self-Driving Heterogeneous Hardware Notes: UtilityDMS CTC 1. As of Aug 2018 (GPU/FPGA, RDMA, NVM, OpenSSD) 2. For Singles Day 2017 DTS 5 The World’s Largest E-commerce Knowledge Graph

Other Other Items Items Rice Refrigerator Cooker Kitchen Appliances (1) Above Edges 400 Family of 5 1 trillion Members Liters (1) Large Edges Traversal per Second Capacity Large 10 million (1) Refrigerator Capacity Rice 10 million Vertices Cooker

Family of 5 Major Members Countertop Above More More Appliances Appliances 5 Liters

Note: 1. As of Aug 2018 6 Indoor High-Definition Map Indoor 3D Reconstruction

7 Multilingual Technologies Make Cross-border Trade Easier

Machine Translation Natural Language Processing Reading Comprehension AliTranx AliNLP AliReader (1) 5 Champions In World-class Machine Champion at Global Semantic Surpassed Humans on SQuAD 48 Translation Competitions (WMT) Understanding Competition “SemEval" Reading Comprehension 1 million Language Directions Served Small and Medium Enterprises (SMEs)

Traffic Drive and User Search on Product Consumer Payment Customer Acquisition Website Display Inquiry & Logistics Service

Note: 1. As of August 31, 2018 8 Genie: No.1 Market Share in China Platforms Content

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100 Devices 50 million

Appliance Categories Apps Registered Devices

…… …… 5 million( 1) Units Sold

Notes: 1. As of June 30, 2018 2. As of May 20, 2018 9 Distributed Voice Interaction Enhances Smart Home Experience

Voice Control 86mm x 86mm Distributed Deployment

5 meters 360 Far-field Sound Pickup with Dual Microphones Immersion Control Experience

10 4+X Labs Global Innovation Partnership

Machine Intelligence Data Computing Robot Financial Technology X Research

•Speech Intelligence •Computing Technology •Intelligent •Financial Intelligence •Quantum Lab 200+ Collaboration Projects •Vision Intelligence •Data Analytics & Intelligence Transportation •Blockchain •AI Lab •Language Technology •Database & Storage •Smart Logistics •Biometrics •Decision Intelligence •City Brain 10+Countries 50+Universities

iscovery dventure omentum utlook

11 8 Cities 300 Researchers

Beijing Shenzhen Hangzhou New York Tel Aviv-Yafo Singapore

Bellevue Sunnyvale

12 Cloud-Edge Intelligent Chipset

New Release Video/Image General Embedded 10x Improvement Processing AI Requirements Requirements Deep-learning Mass Production of Self-developed CPU IP Core Inference Capability DATA CENTER CK902 Support the 3rd Generation RISC-V Instruction System AliNPU V1 AliNPU V2 AliNPU Lite 40x Cloud-Edge Training/Inference IoT Improvement City Brain Industry Brain Smart Security Building Block of IoT Infrastructure Integrated with AliOS AI Inference Chip General Chip Specialized Chip Overall Performance /Power Efficiency Smart Home Autonomous Driving Robotics

13 Quantum Computing: Disruptive Computing Power for the Future

Quantum Processor Quantum Computing System Zhejiang University -Alibaba Joint Center for Quantum Information Technologies TaiZhang High-Precision Superconducting Processor Quantum-Classical Heterogeneous Computing

The First Successful Simulation of Quantum-Enhanced Solutions Quantum Algorithms Chinese Academy of Sciences Benchmarking 81-Qubits Random Quantum Circuit For Logistics, Finance, Materials, Chemistry, etc. For Machine Learning, Optimization, and Physics Simulation -Alibaba Quantum Computing Laboratory

14 TECNOLOGY RESHAPES INDUSTRIES

15 THANK YOU