Alibaba Targets $100B AI and Cloud Revenue, Cloud Sales Up 36%, Profits Drop 67%
Alibaba pledged to surpass $100 billion in combined AI and cloud revenue over five years while reporting a 67% profit decline to 16.3 billion yuan in the latest quarter. Cloud revenue jumped 36% to 43.3 billion yuan and the company plans to raise prices for certain AI services by up to 34%.
1. Long-Term Revenue Goal
Alibaba pledged to surpass $100 billion in combined AI and cloud revenue over the next five years, reflecting its strategic focus on high-margin cloud services and generative AI solutions.
2. Quarterly Profit and Revenue
In the October-December quarter, total revenue rose 2% year-on-year to 284.8 billion yuan, while net profit tumbled 67% to 16.3 billion yuan due to higher marketing, sales and infrastructure investments.
3. Cloud Business Growth
Cloud Intelligence revenue climbed 36% to 43.3 billion yuan, marking its 10th consecutive quarter of double-digit growth in AI-related products and underscoring robust enterprise demand.
4. AI Service Pricing and New Tools
To offset rising costs and fund expansion, Alibaba announced price increases of up to 34% for select AI services and launched the agentic AI tool Wukong to enhance its commercial offerings.