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Alibaba Cloud Soars on AI Demand Surge
20 Aug
Summary
- Alibaba's quarterly revenue increased by 9%.
- AI cloud and compute services revenue rose by 45%.
- Capital expenditures surged 75% for AI infrastructure.
Alibaba announced a 9% rise in quarterly revenue, reaching 268.95 billion yuan ($40.02 billion) for the quarter ended June 30. This growth was significantly boosted by its cloud business, which experienced a surge in demand for AI services.
The company's AI cloud and compute services revenue climbed by 45%, amounting to 48.44 billion yuan. This performance underscores the increasing need for cloud computing power to train and deploy artificial intelligence applications.
To meet this escalating customer demand, Alibaba intensified its investment in AI infrastructure. Consequently, capital expenditures rose by 75% to 67.68 billion yuan during the reported quarter.
An extended "618" shopping festival also contributed to the core e-commerce unit's performance, further bolstering Alibaba's overall financial results. The company is strategically positioning AI as a primary driver for future growth.
