Alibaba Group reports strong growth in its cloud and artificial intelligence business in the June quarter, with revenue rising 45%. The company says the increase is driven by faster momentum in its AI-focused cloud and compute services, contributing to an adjusted profit figure that comes in above expectations.
According to the South China Morning Post, Alibaba’s newly reported segment “AI Cloud and Compute Services,” which also covers its T-Head chip arm, generates 48.4 billion yuan in revenue for the three months ended June 30—its fastest growth pace in 22 quarters. The outlet also reports adjusted profit of 27.3 billion yuan (US$4 billion).
CNBC frames the results by emphasizing that while cloud and AI revenue growth is strong, higher spending on artificial intelligence weighs on overall profitability. Taken together, the reports point to accelerating demand or uptake for AI cloud offerings, alongside elevated costs tied to AI investment and infrastructure.
