{
  "id": 12855575,
  "title": "Alibaba’s AI cloud revenue set to surge over 50% as investment blitz pays off: analysts",
  "url": "https://urgent.news/2026/10/08/alibabas-ai-cloud-revenue-set-to-surge-over-50-as-investment-blitz",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-08T11:30:22.000Z",
  "source": {
    "name": "SCMP Business",
    "slug": "scmp-business",
    "url": "https://www.scmp.com/tech/big-tech/article/3370209/alibabas-ai-cloud-revenue-set-surge-over-50-investment-blitz-pays-analysts"
  },
  "original_language": "en",
  "account": "Alibaba Group Holding anticipates a 50% increase in revenue for its cloud and artificial intelligence unit in the September quarter, according to analysts. This growth is attributed to the profitability of the company's aggressive AI investments. Financial institutions predict the AI Cloud and Compute Services unit's revenue will see a higher growth rate in the three months ending September 30 than the 45% increase witnessed in the previous quarter. The unit's profit margins are also expected to rise, indicating progress in Alibaba's efforts to monetize its significant AI investments. Jefferies projects the segment's profit margin to reach 12.3% for the quarter, while Longbridge Securities forecasts an EBITA margin of approximately 15%, up from 12% in the June quarter. The earnings preview followed a strong performance in the June quarter, with Alibaba's AI cloud segment generating 48.4 billion yuan (US$7.2 billion) in revenue, marking its fastest growth rate in 22 quarters. The AI Lab and Applications segment, which includes the company's AI model labs, Qwen Consumer Business Group, and QwenWork platform, is projected to grow by 20% year-on-year. Jefferies estimates Alibaba's total September-quarter revenue would rise by 9.6% year-on-year, a slight improvement from the 9% revenue growth recorded in the previous quarter. Despite Alibaba's heavy capital expenditure, profits from the cloud business are expected to cover the segment's losses by the end of December. The forecasts follow several announcements made at Alibaba's annual Apsara Conference in September, including the unveiling of the Zhenwu V900 processor, billed as the \"most powerful AI chip in China today,\" and the company's plans to train an AI model with up to 10 trillion parameters. Alibaba also unveiled ambitions to scale its global data center capacity to over 20 gigawatts by 2032. To support its AI ambitions, Alibaba issued HK$80 billion (US$10.2 billion) in new shares in August, with the proceeds to be used to bolster its full-stack capabilities, including expanding its AI infrastructure. Alibaba's chairman, Joe Tsai, emphasized the company's commitment to full-stack AI capabilities during a tech event in Italy on Wednesday. He stated that AI would be integrated into every aspect of the business over the next five years. Meanwhile, Alibaba's core e-commerce business continues to face challenges amid intense domestic competition. Jefferies anticipates quarter-on-quarter losses for the company's quick-commerce unit to narrow to approximately 9.8 billion yuan. Alibaba shares fell 1% to HK$104.30 on Wednesday, following a general decline in Chinese tech stocks in Hong Kong. The company is expected to release its September-quarter earnings in November.",
  "summary": "Alibaba Group Holding is expected to report a 50 per cent revenue surge for its cloud and artificial intelligence unit for the September quarter, driven by strong returns on its aggressive AI investments, according to analysts. Analysts across several financial institutions projected revenue growth for the Chinese tech giant’s AI Cloud and Compute Services unit to have accelerated in the three…",
  "key_points": [
    "Alibaba's AI cloud revenue expected to surge over 50% in September quarter",
    "Analysts attribute growth to profitability of AI investments",
    "Profit margins forecast to reach 12.3% for the quarter"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "SCMP Tech",
        "title": "Alibaba’s AI cloud revenue set to surge over 50% as investment blitz pays off: analysts",
        "url": "https://urgent.news/2026/10/08/alibabas-ai-cloud-revenue-set-to-surge-over-50-as-investment-blitz-12855956",
        "published": "2026-10-08T11:30:22.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}