Alibaba revenue rises 9% as AI boosts cloud growth

Alibaba reported revenue of nearly 269 billion yuan ($40.0 billion) for the quarter ended June 30, up 9% from a year earlier, as demand linked to artificial intelligence lifted its cloud business.

The Hangzhou-based company said net profit fell 76% year on year to 10.5 billion yuan, reflecting large strategic investments and economic pressure in China.

Chief executive Eddie Wu described a “strong quarter” and said Alibaba Cloud's external revenue growth accelerated to 45%. He said AI-related product revenue delivered triple-digit growth for the 12th consecutive quarter.

Alibaba has been investing tens of billions of dollars in AI. The company is known for its open-source Qwen AI models and also runs major Chinese online shopping platforms including Taobao.

The company has faced pressure from weak consumer demand in China and a price war in e-commerce. In June, the US Defense Department designated Alibaba as a military-linked firm, a claim the company challenged in a lawsuit filed in a California federal court.