Alibaba’s AI cloud growth surge drives earnings despite soaring tech spending
Alibaba Group Holding on Thursday reported revenue growth of 45 per cent for its cloud and artificial intelligence division in the June quarter, driving adjusted profit to a better-than-expected 27.3 billion yuan (US$4 billion). AI Cloud and Compute Services, the Chinese tech giant’s new business segment covering its cloud business and T-Head chip arm, posted 48.4 billion yuan in revenue for the…
Alibaba Group Holding reported a 45% revenue growth for its cloud and artificial intelligence division in the June quarter, leading to adjusted profit surpassing expectations. The AI Cloud and Compute Services segment, covering the company's cloud business and T-Head chip arm, saw its fastest growth rate in 22 quarters, with revenue reaching 48.4 billion yuan.
This segment's AI-related product revenue experienced triple-digit growth for the 12th consecutive quarter, reaching 12.4 billion yuan. Despite a surge in capital expenditure by 75% to 67.7 billion yuan, Alibaba's total revenue increased by 9% year on year to 269 billion yuan, slightly higher than the 3% growth seen in the previous quarter.
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