Ma was quoted as telling the paper he would step down on September 10 to pursue philanthropy in education. Despite leaving day-to-day operations, Ma will remain on the board and mentor Alibaba's management.
The charismatic Ma told the Times that he plans to retire on Monday, at the age of 54, saying this marks "the beginning of a new era".
Ma has been backing away from Alibaba over the past few years, stepping down as chief executive officer in 2013 but remaining very involved in the company's strategic planning, according to the Times.
Born into a poor family in Hangzhou, eastern Zhejiang province, Ma became a university teacher but gave the job up after discovering the internet.
Elon Musk Smokes Weed In Live Interview!
Tesla shares fell as much as 10% to $252.25 as of 9.46am in NY , the steepest intra-day drop since June 2016. Marijuana is legal for medical and recreational use in California, where the interview took place .
Roy Moore sues Sacha Baron Cohen for $95 million
Baron Cohen has faced past lawsuits over similar pranks, but those actions faltered because the individuals had signed releases. The lawsuit includes the production company behind Who Is America? , Showtime , and the show's network, CBS .
Jordan Henderson signs new Liverpool deal
Liverpool top the Premier League table after winning all of their opening four games, ensuring the club's best start since 1990-91.
On one hand, Chinese tech companies are facing increased scrutiny by the Chinese government led by President Xi Jinping, on the other hand, the tech firms are caught in an escalating trade war between the USA and China.
After being knocked back by USA venture capitalists in 1999, a cash-strapped Ma persuaded friends to give him $60,000 to start Alibaba, which operated out of an apartment in Hangzhou.
The company, still headquartered in his hometown, initially allowed businesses to sell products to each other online but soon morphed into China's largest online retail market.
Alibaba has been referred to as the Amazon of China. But he has also said in the past that he isn't happy being the wealthiest person in China, where vast personal fortunes have only emerged in recent years and are subject to intense scrutiny.
It transformed how Chinese people shop and pay for things, especially through the now ubiquitous Alipay digital payment service.
Ma has long shown an admiration for Microsoft founder Bill Gates who has donated vast amounts of his wealth to philanthropic causes. A former teacher, Ma told Bloomberg TV earlier this week he might go back to teaching someday.