Alibaba’s Cloud Intelligence Group reported RMB 30.1 billion ($4.15 billion) in revenues for Q4 FY2025, an 18% increase year-over-year, driven by the rising adoption of AI products across various industries. This revenue accounted for about 12.7% of total company revenues. The company has plans for further growth as many businesses are transitioning from traditional in-house infrastructure to cloud-based AI workloads.
In April, Alibaba launched the Qwen3 model series, and a second data center is set to open in South Korea by the end of June 2023. The firm anticipates that demand for AI-related products will grow, with revenues increasing at triple digits for seven consecutive quarters. Meanwhile, Alibaba shares have increased by 34.3% year-to-date, outperforming the broader market.
As Alibaba invests heavily to maintain its market leadership in AI cloud services, it faces stiff competition from Amazon and Microsoft, both of which are expanding their offerings in AI-powered cloud solutions. Amazon’s recently enhanced generative AI lineup includes Claude 4, while Microsoft has launched its Azure AI Essentials program to assist businesses in scaling AI technology responsibly.
