The Manifesto that Shook Hangzhou: DingTalk and the Crisis of Alibaba’s AI Transition

A massive internal manifesto at DingTalk has sparked a leadership crisis, leading to the departure of CEO Chen Hang. The incident highlights Alibaba’s struggle to shift from a rigid, top-down management culture to a more agile, decentralized structure required for AI innovation.

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Key Takeaways

  • 1A 75,000-word resignation letter exposed the failure of DingTalk's AI project 'ONE' and criticized its 'mechanical' management.
  • 2Alibaba's Partner Committee took the rare step of publicly rebuking DingTalk's leadership and reasserting core values.
  • 3Chen Hang (Wuzhao), the founder of DingTalk, was replaced by '90s-born' executive Chen Yusen.
  • 4The leadership change signals a shift toward smaller, autonomous, and purpose-driven organizational units.
  • 5The internal strife reflects a broader 'AI anxiety' within Alibaba as it struggles with 'Big Company Disease' while navigating new technologies.

Editor's
Desk

Strategic Analysis

This isn't just about a project failure; it's an existential reckoning for Alibaba's corporate DNA. For years, Alibaba’s strength was its 'Iron Army' culture—a disciplined, top-down execution machine that won the e-commerce and mobile office wars. However, the generative AI revolution thrives on serendipity and flat hierarchies, qualities often smothered by Alibaba’s legacy bureaucracy. By elevating a younger leader and publicly rebuking the old guard, the Partner Committee is attempting a culture transplant. They are betting that decentralized, purpose-driven teams can cure the organizational inertia that threatens to turn the Hangzhou giant into a legacy player in the global AI race.

China Daily Brief Editorial
Strategic Insight
China Daily Brief

In June 2026, a 75,000-word internal resignation letter shook the foundations of Alibaba’s campus in Hangzhou. Written by an employee named Yousu, the manifesto detailed the agonizing lifecycle of 'ONE,' a high-profile artificial intelligence project within DingTalk. The document did not just critique a product; it served as a scathing indictment of a management style that many believe has become obsolete in the age of generative AI.

The fallout was swift and uncharacteristically public. Alibaba’s Partner Committee, the company’s highest decision-making body, issued a stern rebuke of DingTalk’s leadership, emphasizing that people are the most precious asset. This was a sharp departure from the gentle farewells of previous years, signaling a 'thunderstorm' within the executive ranks that led to the immediate replacement of longtime CEO Chen Hang.

Chen Hang, known by his alias Wuzhao, was the architect of DingTalk’s original success during the mobile internet boom. He built a platform that answered the basic needs of traditional managers: tracking tasks and ensuring top-down visibility. However, the rigid efficiency that once conquered the SME market has become a liability in an AI landscape where technical paths are uncertain and product forms are constantly evolving.

The appointment of Chen Yusen, a younger leader known for lean, experimental successes like 'Mule Run,' signals a strategic pivot toward what theorists call 'exponential organizations.' These are small, autonomous cell-like structures that operate with low marginal costs and high agility. Alibaba is betting that this decentralized approach can dismantle the stifling hierarchies of its 'Big Company Disease' and foster a new ecosystem for innovation.

Ultimately, the crisis at DingTalk is a microcosm of Alibaba’s broader AI anxiety. As the group experiments with everything from large language models to AI-driven hardware, it is finding that its greatest hurdle is not computing power, but its own organizational inertia. The transition from a pyramid-style empire to a network of agile innovators will determine whether Alibaba leads the next era or merely manages its own decline.

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