"Revenue from its Cloud Intelligence Group, which focuses on cloud computing and AI developments, jumped 38% in the January-March quarter from a year ago to 41.6 billion yuan ($6.1 billion). That was faster than the 36% and 34% growth in the previous two quarters, respectively."
"However, Alibaba recorded an overall of 848 million yuan ($125 million) loss from operations for the quarter, a key measure of profitability of its core operating businesses, which was down sharply from a 28.5 billion yuan gain the same period last year. Growing technological investment was one of the main reasons for rising expenses that weighed on profitability, as technology companies globally race to invest to boost infrastructure in supporting the ballooning AI demand."
"This week, Alibaba said it has fully connected its flagship Qwen AI app to its e-commerce platform Taobao, allowing users to "browse, compare, place orders, and manage deliveries through natural conversation" in hopes of driving up demand. It launched its "agentic" AI tool Wukong in March in expanding its products for commercial customers, and raised prices for some AI services."
""Alibaba's AI has moved beyond the initial investment phase and progressed commercialization at scale," said CEO Eddie Wu on Wednesday in prepared remarks during an earnings call. Many technology companies are now facing the challenge of boosting AI-related revenue and proving that the huge investment costs can pay off."
Revenue rose 3% to 243 billion yuan. Cloud Intelligence Group revenue increased 38% year over year to 41.6 billion yuan, faster than prior quarters. Operating loss totaled 848 million yuan, down from a 28.5 billion yuan operating gain a year earlier. Higher technology investment drove expenses and weighed on profitability as companies globally expanded AI infrastructure to meet demand. Alibaba pledged at least 380 billion yuan over three years for cloud computing and AI infrastructure. Alibaba connected its Qwen AI app to Taobao to let users browse, compare, place orders, and manage deliveries through natural conversation. It launched the agentic Wukong tool for commercial customers and raised prices for some AI services. CEO Eddie Wu said AI has moved beyond initial investment and progressed commercialization at scale.
Read at Fast Company
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