Alibaba's cloud and AI revenue jumps 45%, fastest in 22 quarters, break-even seen in 3 years
pstAsiatech · x · 2026-08-21
Alibaba's new AI Cloud and Compute Services segment (cloud plus T-Head chips) posted revenue of 48.4 billion yuan, up 45% YoY — its fastest growth in 22 quarters — with adjusted EBITA up 133% to 5.6 billion yuan and margin rising from 7.2% to 11.6%. AI-related product revenue kept triple-digit growth for a 12th straight quarter at 12.4 billion yuan. Group revenue rose 9% to 269 billion yuan with better-than-expected adjusted profit of 27.3 billion yuan. Executives said soaring AI computing investments will break even within three years, possibly two as gross margins improve.
Related event: Alibaba Profit Plunges 75% as Cloud AI Revenue Soars 45%(3 posts)→
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