Alibaba may have a new competitor in the Chinese market in terms of cloud computing services. Its newest rival is a Beijing-based company named Kingsoft Corp.

The software company, whose chairman is Xiaomi Corp. co-founder Lei Jun, is exploring cloud computing. Cloud services are expected to take off in the coming years as Chinese corporations begin to move IT onto the internet.

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Kingsoft Chief Executive Officer Hongjiang Zhang is confident that his much-smaller company can compete with giant firms. In its latest quarterly report, Kingsoft cited IDC research in 2015 showing that the company was the fastest-growing player in cloud services when the business more than tripled, Value Walk reported.

“In gaming and video cloud and healthcare, we are the leader, so I’m quite confident we will have our place and we’re gaining market share while increasing revenue. It’s still far from breaking even but the key point I want to make here is that break-even is not our priority and I don’t think it’s any player’s priority at this moment in China,” said Zhang.

Zhang explained that being breakeven is not the company’s priority, and he thinks that no company in China will prioritize that. Its cloud computing unit was behind a nearly 30 percent increase in capital expenditures in its latest quarter, according to Bloomberg.

TagsAlibaba, Kingsoft Corp, china, cloud computing service, gaming business, mobile business, cloud services