Alibaba's cloud revenue in the second quarter surged 34% driven by AI workloads. Alibaba's cloud revenue is on an annual revenue run rate is more than $22 billion.
Alibaba's cloud business accelerated in the company's fiscal first quarter with revenue growth of 26% and an annual revenue run rate approaching $19 billion.
Alibaba Cloud is seeing more AI workloads, accelerating revenue growth and benefiting from its Qwen open source family of models.
Alibaba's cloud unit is now approaching a $17 billion annual revenue and the company said it will continue to invest in AI services.
Alibaba said it saw "double-digit public cloud growth and increasing adoption of AI-related products." AI-related product revenue grew at a triple-digit pace.
Alibaba's Cloud Intelligence group posted revenue growth of 3% for the quarter ending March 31, well below global cloud providers. The company said AI-related workloads are showing strong demand.
Alibaba's cloud unit in the fiscal third quarter delivered revenue growth of 3%, but improved its adjusted earnings before interest, taxes and amortization by 86%.
Alibaba said it won't spin off its cloud intelligence group citing US sanctions and an uncertain demand environment.
Alibaba's cloud unit, which includes Alibaba Cloud and DingTalk, a productivity and collaboration suite, delivered fiscal first quarter revenue of $3.58 billion, down 3% from a year ago
