In its most recent quarter, Alibaba’s cloud intelligence division delivered 34% year-over-year revenue growth, more than double the 15% top-line expansion from its continuing operations. Within that unit, AI-related product revenue has posted triple-digit growth for nine straight quarters, underscoring strong enterprise demand for machine-learning tools and data services. Cloud infrastructure investments of over $17 billion in the trailing 12 months have enabled Alibaba to capitalize on China’s AI boom without diluting shareholders or taking on significant debt.

Taobao and Tmall accounted for 45% of consolidated revenue in fiscal 2025 but generated more than 100% of adjusted EBITDA, with a combined margin of 44%. That robust cash flow has funded 14 consecutive quarters of share buybacks and regular dividends, while still supporting aggressive capital spending on next-generation technology. Over the past year, Alibaba has allocated more than $17 billion to AI and cloud infrastructure projects, maintaining strong profitability even as it scales up research and hardware development.

Alibaba is anchoring a planned Hong Kong IPO for AI startup MiniMax, committing approximately $350 million to the deal alongside the Abu Dhabi Investment Authority. MiniMax is targeting a valuation near $6.5 billion and plans to raise around HKD 3.83 billion through an offering expected to price between HKD 151 and HKD 165 per share. While the investment strengthens Alibaba’s position in domestic AI research, it also exposes the company to regulatory scrutiny in both China and international markets, especially as geopolitical tensions over technology supply chains intensify.