Chinese tech giant Alibaba posts AI-fuelled revenue bump
The firm said its revenue in the quarter ended June 30 was nearly 269 billion yuan (US$40 billion), up 9% year-on-year.
Alibaba, the Chinese tech giant, reported a revenue growth of 9% year-on-year to nearly 269 billion yuan (US$40 billion) in its latest quarter, driven by the surge in global artificial intelligence (AI) demand for its products. The Hangzhou-based company has heavily invested in AI, with its shareholders keen to observe its monetization of these investments.
CEO Eddie Wu highlighted a strong quarter, citing the successful commercialization of their full-stack AI capabilities. Alibaba Cloud's external revenue growth accelerated to 45%, with AI-related product revenue experiencing triple-digit growth for the twelfth consecutive quarter. Despite the revenue boost, net profit plummeted 76% year-on-year to 10.5 billion yuan, attributed to substantial strategic investments and economic pressures in China.
The company is renowned for its open-source Qwen AI models, which have gained worldwide popularity among developers. However, Alibaba has faced recent challenges, including a designation by the US defense department as a military-linked firm and a regulatory crackdown in China aimed at controlling the dominance of top tech firms.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 3 other outlets
- Chinese tech giant Alibaba posts AI-fuelled revenue bump freemalaysiatoday.com
- Chinese tech giant Alibaba posts AI-fuelled revenue bump straitstimes.com
- Alibaba Q2 revenue rises 9% as AI cloud demand grows techinasia.com
