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 Cloud AI Revenue Jumps 45%, Fastest in 22 Quarters(2 posts)→
More from Venture
- Skymerse Uses AI to Automate Commercial Flight Operations — ycombinator · 2026-08-21
- Nvidia acquires Poolside AI's model factory for $6B — eliebakouch · 2026-08-21
- AI Bubble? Paid Token Traffic Continues to Surge, Differentiating It from Past Bubbles — AccBalanced · 2026-08-21
- Open source project oMLX hits 20k stars in six months — pcuenq · 2026-08-21
- If AI Is So Smart, Why Can't It Make Itself Profitable? — CheckLatter1150 · 2026-08-21
- US Leads Tech but China Crushes Frontier Pricing, Bloomberg Chart Shows — ivan_bezdomny · 2026-08-21