Meitu Inc announces Alibaba partnership

Meitu Inc, a Chinese tech company known for its popular image-editing app and content-sharing software, announced on Tuesday a strategic partnership with Alibaba Group's wholly-owned subsidiary Alibaba.com China Ltd, and received a $250 million investment.

The two companies will begin cooperation across multiple fields such as e-commerce platforms, artificial intelligence technology and cloud computing.

According to an announcement issued by Meitu, the company will issue convertible bonds to Alibaba's subsidiary with a principal amount of $250 million for a term of three years at an initial conversion price of HK$6 ($0.77) per share.

Meitu and Alibaba will carry out in-depth cooperation in e-commerce and AI model development. Alibaba will prioritize the promotion of Meitu's AI e-commerce tools on its e-commerce platforms and provide technical support to meet the computing power requirements for inference and training of Meitu's AI products.

Meitu has committed to purchasing no less than 560 million yuan ($77.7 million) worth of cloud services from Alibaba over the next three years. Both parties will also explore more differentiated innovative projects to create unique experiences for users on their respective platforms.