Alibaba's fourth quarter earnings were disappointing, but the cloud unit continues to surge. The cloud intelligence group reported revenue growth of 40% with AI-related products accounting for 30% of revenue.

Eddie Wu, CEO of Alibaba, said in a statement:

"Our Qwen LLM demonstrated leadership in reasoning and coding while we strengthened our multimodal model portfolio with the launch of video generation and world models. As we see massive potential for agentic AI, we launched multiple enterprise AI agents for office and coding use cases, and we fully integrated e-commerce capabilities into the consumer-facing Qwen app, deepening synergies between AI and our consumer ecosystem."

Alibaba Cloud delivered fourth quarter revenue of $6.03 billion, up 38% and 40% with external customers only with operating profit of $550 million.