Alibaba Cloud Sees Strong Revenue Boost Driven by Artificial Intelligence

Published: 27 Nov 2025

Author: Precedence Research

Share :

A leading tech player in China, Alibaba Group, saw a 34% surge in revenue from its cloud business in its most recent year, driven by the global artificial intelligence wave. But overall revenue at the Chinese group for the July-September quarter surged by just 5% year-on-year to 247.8 billion Yuvan, which is equal to $35 billion, and profit was less than 52% as compared to last year due to the fierce price dispute in China's e-commerce landscape, including the food delivery sector, eroding short-term profitability. JD.com, a major rival of its e-commerce, has reportedly witnessed a 55% drop in net profit in the same quarter.

Alibaba initiated e-commerce and later turned its focus to cloud and AI technologies applications. At the start of this year, it pledged to invest at least 380 billion Yuan, or $53 billion, over three years to advance its cloud computing and AI infrastructure. In addition to this move, CEO Eddie Wu said, the group’s significant investments in AI had assisted its revenue growth. The 34% cloud revenue growth exceeded the 26% increase in the April-June quarter.

The company added that the demand for AI was accelerating significantly and that it has greater conviction in future AI demand. It may also end up investing more than the estimated 380 billion yuan in AI to meet surging demand, according to a statement released by Alibaba Group.

Recently, Alibaba announced that its upgraded AI chatbot, Qwen, which aims to rival OpenAI’s ChatGPT, has recorded 10 million downloads in the first week of its public release. The company gained 2% in Hong Kong just before the opening bell on the New York Stock Exchange, and shares increased 2.4%. Shares have surged more than 90% so far this year, driven by optimism over its AI progress.

Chinese enterprises have been laying a strong foundation for AI development since tech startup DeepSeek upended the market, raising questions about the dominance of its U.S. rivals.