Alibaba Cloud Grows Thanks to AI: 26% Quarterly Revenue Increase

Alibaba Group announced that its cloud computing revenue increased by 26% in the quarter ending in June. This significant increase was supported by triple-digit growth in sales of artificial intelligence-related products. According to information available online, Alibaba Cloud's revenue reached $3.64 billion during this period, equivalent to approximately CZK 82 billion. This growth was driven primarily by demand for AI products, which accounted for more than 20% of revenue from external customers. Traditional computing and storage services also saw gains thanks to growing interest in AI.

Qwen3 Launch and Market Position

The strong revenue growth followed the April launch of Qwen3, the latest generation of Alibaba's open-source foundational artificial intelligence models. The launch strengthened the company's position as one of the leaders in China's domestic AI race. Alibaba Cloud, China's largest cloud service provider, is using a broad range of open-source AI models to encourage more companies to use its cloud platform. According to available information, triple-digit revenue growth from AI products continues, indicating strong demand that is still not being fully met. The company is investing in AI infrastructure, including lowering prices for AI workloads and improving efficiency.

E-Commerce Performance and Total Revenue

Revenue from Alibaba's Chinese e-commerce segment increased by 10%. However, the company's total revenue rose by only 2% in the quarter, partly due to the earlier sale of two large brick-and-mortar retail businesses. These businesses are no longer included in Alibaba's revenue. Online sources indicate that the cloud segment's EBITA (earnings before interest, taxes, and amortization) increased by 155% to $322.15 million (approximately CZK 7.25 billion), thanks to higher margins from AI services.

Source: www.theinformation.com