Alibaba to spin off mobile OS team

Chinese Internet giant spinning off its mobile operating system (OS) team from its cloud computing division and will be investing US$200 million in the development of Aliyun.

Chinese Internet giant Alibaba will be investing US$200 million in its Aliyun OS mobile operating system (OS) team which will be spun off from the company's cloud computing division.

A report Friday on Xinhua cited an internal memo by Jack Ma which said Aliyun OS  will be spun off from, the company's cloud computing unit, into a separate entity which will directly report to the Alibaba Group.

The memo added that Alibaba Group will be investing US$200 million in Aliyun OS to strengthen its talent, technology and infrastructure.

Before the spin off, was responsible for both cloud computing and mobile OS businesses. After the spin off, will solely focus on cloud computing, the report said.

Ma also noted that Alibaba Group's chief data officer Jonathan Lu will act as president while the group's chief technology officer, Wang Jian, will be the chairman and CTO of the new unit.

Alibaba recently had a spat with Google over Aliyun OS which the U.S. company said was illegally using Android runtime, framework and tools . Last week, Acer was reportedly prevented by Google from launching an Aliyun handset for the Chinese market.