NetEase has announced it is abandoning the public cloud market as the company struggles to compete against more established rivals.

NetEase is known primarily as a video game company, but it has branched into various cloud services and offerings. In a note to the South China Morning Post, the company said it is making the decision as part of a “business strategy adjustment.”

The company has been facing growing pressure from fellow Chinese cloud companies, particularly Alibaba and ByteDance, both of which have significant competitive advantages. Like many U.S. cloud companies, Alibaba has gone all-in on AI, even scoring a deal to be Apple’s partner in China for Apple Intelligence. ByteDance’s cloud unit is also well established—and is rolling out its own AI-powered features—and the company also owns TikTok.

In contrast, as SCMP points out, NetEase has been falling behind in the AI race, putting it at a major disadvantage, compared to its rivals.

The company downplayed the impact its decision will have on customers, saying it has relatively few in mainland China.

“We have arranged a dedicated team to communicate with existing users to mitigate the impact on them,” a spokesperson told SCMP.