Alibaba Earnings: Cloud Revenue Jumps 34% as AI Demand Takes Off

Alibaba's latest quarterly results revealed strong performance in its Cloud Intelligence Group, with a 34% revenue boost fueled by AI services that posted triple-digit growth for the ninth straight quarter. The e-commerce giant also saw customer management revenue climb 10% at Taobao Tmall.

⬤ Alibaba's recent earnings showed how AI is reshaping its business. Cloud Intelligence Group led the way with 34% revenue growth year-over-year, powered by companies rushing to adopt AI services. AI-related products specifically grew at triple-digit rates for the ninth quarter running, reflecting massive enterprise appetite for infrastructure that can handle data-heavy AI applications. The company is clearly in investment mode, pouring resources into weaving AI into commerce and everyday services as part of a longer-term strategy.

⬤ Beyond the cloud surge, Taobao Tmall delivered 10% growth in customer management revenue. The improvement came from better user engagement, stronger unit economics, and more active advertisers on the platform. Total quarterly revenue hit RMB 247.8 billion (US$34.8 billion), up 5% from last year. Operating income dropped to RMB 5.4 billion (US$754 million) as the company invested heavily in quick commerce, user experience upgrades, and tech infrastructure. Net income landed at RMB 21 billion (US$2.9 billion), with non-GAAP net income at RMB 10.4 billion (US$1.5 billion). Over the past four quarters, Alibaba deployed roughly RMB 120 billion into AI and cloud buildout.

⬤ The company's investment priorities show where management sees the future. The RMB 120 billion deployed over the past year went straight into AI capabilities and cloud infrastructure, signaling confidence that enterprise AI adoption is just getting started. Quick commerce and user experience improvements also got significant funding, even as they pressured near-term margins. Alibaba is trading short-term profitability for positioning in what it views as transformative technology shifts.

⬤ The results paint a clear picture: AI adoption is driving Alibaba's business transformation. With cloud services increasingly tied to next-gen AI workloads and e-commerce finding stability, the company is betting big on digital infrastructure. The momentum suggests AI demand will likely remain a key growth engine in the quarters ahead.

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Usman Salis E-mail

Usman has been in the blockchain space for 9 years and written dozens of articles about crypto in his career. He wants to put crypto on the global map.