Alibaba’s Cloud Revenue Surges 34% on AI Product Demand

Alibaba Group Holding Ltd. reported stronger-than-expected earnings as its cloud computing division posted 34% revenue growth, fueled by accelerating adoption of artificial intelligence products. The Chinese e-commerce giant’s cloud intelligence unit generated 39.82 billion yuan ($5.6 billion), surpassing analyst estimates of 37.9 billion yuan.

AI-related products delivered triple-digit percentage growth for the ninth consecutive quarter, with the Qwen chatbot surpassing 10 million downloads in its debut week. Total revenue climbed 5% to 247.8 billion yuan, exceeding projections. Alibaba has invested aggressively in AI infrastructure, committing 120 billion yuan over the past year.

The results sent Alibaba’s U.S.-listed shares up nearly 8% in early trading. Cloud computing now represents the company’s fastest-growing segment, outpacing Core commerce operations. This performance underscores how Chinese tech giants are pivoting toward enterprise services amid regulatory pressures on consumer internet businesses.