Key Points
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Alibaba has invested over $17 billion in AI and cloud infrastructure in the past year.
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AI-related product revenue has grown over 100% for nine consecutive quarters.
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Alibaba’s e-commerce sector, particularly Taobao and Tmall, accounted for 45% of its revenue in fiscal 2025, contributing over 100% of adjusted EBITDA.
Alibaba Group (NYSE: BABA) has made significant strides in artificial intelligence, underscoring its commitment with over $17 billion in investments in the past year. Its AI-related product revenue has witnessed over 100% growth for nine straight quarters, positioning the company as a formidable player in the AI landscape. During its latest quarter, Alibaba’s cloud intelligence business reported a 34% revenue increase, outpacing the overall business growth of 15%.
In fiscal 2025, Taobao and Tmall combined generated 45% of Alibaba’s consolidated revenue, with an impressive adjusted EBITDA margin of 44%. This robust performance enables Alibaba to finance its AI initiatives without compromising profitability, ensuring it remains competitive as it gears up to meet rising demands for AI solutions amid global market dynamics.
