Alibaba Seeks $100 Billion AI and Cloud Revenue as Q3 Profit Plunges 66%
Alibaba aims to exceed $100 billion in AI and cloud revenue in five years, driven by 35% growth in AI sales and 470,000 T-Head chips shipped. Quarterly revenue rose slightly to RMB 284.8 billion, while net income tumbled 66% and adjusted EBITA dropped 57% after heavy AI infrastructure investment and a 34% workforce cut.
1. AI and Cloud Revenue Target
Alibaba has set a five-year goal to achieve over $100 billion in combined AI and cloud revenue. The company plans to leverage its Cloud Intelligence segment, expand AI model offerings, and scale its in-house T-Head chip manufacturing to meet growing corporate demand.
2. Quarterly Performance and Profit Decline
In the most recent quarter, total revenue climbed modestly to RMB 284.8 billion, but net income plunged 66% and adjusted EBITA fell 57%. The profit pressure reflects substantial spending on AI infrastructure, chip development, and commerce platforms to support long-term growth.
3. Workforce Reduction and Investment Impact
Alibaba reduced its workforce by 34% year over year to 128,197 employees, part of a broader restructuring that followed divestitures of offline retail units. Management views the headcount cuts and elevated investments as necessary steps to strengthen competitiveness in AI and cloud markets.