Alibaba reports 38% jump in AI and cloud revenue
Alibaba reports 38% jump in AI and cloud revenue
Publish Date: 2026-05-13 13:27:00
Source Domain: apnews.com
- Alibaba sees accelerated growth in both its artificial intelligence and cloud businesses, with the AI portion growing 38% in the January-March quarter despite overall revenue rising just 3% to 243 billion yuan ($36 billion).
- Its Cloud Intelligence Group revenue surged significantly, outperforming growth rates from the previous two quarters, reflecting the increasing demand and investment in AI infrastructure.
- Operating losses were significant at 848 million yuan ($125 million) due to higher technological investments aimed at bolstering AI infrastructure.
- Alibaba’s CEO, Eddie Wu, emphasized the company’s shift towards commercializing AI at scale, integrating AI into its e-commerce platform Taobao, and raising prices for some services.
- The company plans to connect its AI agent tool Wukong to commercial customers and has set a target goal of surpassing $100 billion in annual AI and cloud revenue within the next five years.
- Alibaba’s results come as broader challenges for tech firms in managing AI investment costs while sustaining growth, with rivals like Tencent also navigating AI profitability expectations.
- The trend of increased capital expenditure in AI continues, as companies transition from user acquisition to monetization strategies.
