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Key Points
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Alibaba and Amazon share striking similarities in their business models and ambitious AI aspirations.
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Alibaba’s AI sales have experienced seven consecutive quarters of triple-digit year-over-year growth.
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Amazon is infusing AI into over 1,000 apps across the company.
Alibaba (NYSE: BABA) has experienced significant growth in its AI revenue, achieving triple-digit year-over-year growth for seven consecutive quarters, contributing to a total revenue of $137.3 billion for fiscal 2025, a 6% increase from the previous year. Its cloud computing division reported sales of $16.3 billion, up 11% year-over-year.
In contrast, Amazon (NASDAQ: AMZN) shares have risen just 2% this year through July 7, with first-quarter sales reaching $155.7 billion, up 9% year-over-year. Its second-quarter sales are projected to exceed $159 billion, expecting a 7% increase over 2024. Amazon has over 1,000 AI applications in development, and its cloud sales grew 17% year-over-year to $29.3 billion.
Overall, while Alibaba boasts impressive AI revenue growth and a strong cloud business, Amazon, despite facing lower growth this year, is expected to benefit from ongoing investment in AI. Both companies are also contending with geopolitical pressures affecting their operations.
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