Alibaba Cloud continues to surge in Q3

Alibaba Cloud posted third quarter revenue growth of 36% driven by AI demand. The company's traction with its Qwen family of models also remained strong.

The cloud results from Alibaba overshadowed a weaker-than-expected quarter from the company overall. The miss was due to Alibaba's commerce unit.

Alibaba Cloud delivered third quarter revenue of $6.19 billion with adjusted EBITA of $3.91 billion. The company said its AI products are still growing a triple-digit percentage clip. Alibaba Cloud now has 92 availability zones across 29 regions globally as of Dec. 31, 2025.

Key points from Alibaba Cloud:

• Qwen model family saw strong usage across multiple verticals including manufacturing, financial services, consumer retail and software development. Qwen models have passed the 1 billion cumulative download mark on Hugging Face.
• Alibaba's chip design unit, T-Head Semiconductor Co., has launched its proprietary GPU in production at scale. "T-Head enhances our long-term computing supply capacity. By combining its capabilities with our Qwen models and cloud computing, it delivers highly cost-effective AI services to external customers. This business has scaled rapidly and now contributes meaningfully to our cloud infrastructure supply," said Alibaba.
• The Qwen app was upgraded Jan. 15 and has deep integration across Alibaba's various services. The Qwen app has 140 million users.