Alibaba Group has shared a substantial increase in its quarterly profits, which resulted from its growing cloud computing business and strategic AI investments. The tech giant achieved a profit increase of 239%, reaching 48.9 billion yuan (US$6.7 billion) during the December quarter.
According to a recent report by Reuters, Alibaba’s U.S.-listed stock experienced an 11% increase in pre-market trading.
Eddie Wu, Alibaba’s Chief Executive, declared in a conference call with analysts, “This quarter’s results demonstrated substantial progress in our ‘user-first, AI-driven’ strategies and the re-accelerated growth of our core businesses.”
The company’s cloud intelligence unit achieved a 13% revenue growth, strengthening Alibaba’s position in China’s AI competition.
Wu said AI is unlocking business opportunities for the company, and it is the “kind of opportunity for industry transformation that only comes around once every few decades.” He added that AI could even replace 50% of the global GDP.
Therefore, Alibaba plans to invest majorly in the upcoming three years in AI and cloud computing but does not go into specific monetary details.
Alibaba made a solid mark in China’s AI race
The company’s extensive AI objectives have become attractive to investors after Alibaba’s co-founder, Jack Ma, attended a meeting with Chinese President Xi Jinping. The company also got a boost in its share price by 40% since the start of 2025.
Alibaba entered the competitive AI market through its partnership with Apple, which enables AI-powered solutions for iPhones sold in China.
Alibaba improved its AI model to Qwen 2.5 last month. According to the company, its new AI model performs better than other chatbots like DeepSeek’s V3.
Taobao and Tmall, Alibaba’s core domestic e-commerce platforms, achieved a 5% revenue increase because of promotional activities and an extended Singles’ Day shopping period. The international platforms AliExpress and Alibaba.com contributed to a 32% revenue boost during this period.
To optimize operations, the company has integrated its domestic and global e-commerce platforms under the Alibaba E-commerce Business Group.
Cryptopolitan Academy: Want to grow your money in 2025? Learn how to do it with DeFi in our upcoming webclass. Save Your Spot
