AI Boosts Alibaba's Cloud Revenue Despite Overall Miss

September 01, 2025
Alibaba reported a 26% increase in cloud revenue, driven by AI, despite missing overall revenue estimates. The company's cloud segment outperformed expectations, while e-commerce growth lagged.

Alibaba Group has reported a significant boost in its cloud computing revenue, driven by artificial intelligence, despite missing overall revenue estimates. The company's cloud segment saw a 26% increase in revenue, reaching 33.40 billion yuan ($4.67 billion), surpassing the expected 18.4% rise, according to Reuters. This growth was attributed to the increasing adoption of AI-related products by customers.

While the cloud division thrived, Alibaba's overall revenue growth was weaker than anticipated, with a 2% year-over-year increase. The company's e-commerce business, a major revenue driver, did not perform as strongly, contributing to the shortfall in meeting revenue expectations.

Eddie Wu, CEO of Alibaba, highlighted the company's strategic focus on AI and cloud computing as key pillars for future growth. Over the past year, Alibaba has invested over 100 billion yuan in AI infrastructure and product development, underscoring its commitment to advancing its technological capabilities.

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