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Alibaba Group’s RMB 30 Billion AI Run-Rate Push: A New Cloud Powerhouse?

Alibaba Group’s latest quarterly and full fiscal year 2026 results reflect an 11% year-over-year revenue growth, driven primarily by significant advancements in its AI and cloud computing divisions along with improved consumption business metrics. The Cloud Intelligence Group exhibited accelerated external revenue growth of 40%, maintaining triple-digit growth in AI-related product revenue for the 11th consecutive quarter. AI-related products now represent 30% of the group’s cloud revenue, with expectations to surpass 50% within a year, signaling a notable shift from traditional cloud services to AI-driven offerings such as models, AI compute, and agent services. The company highlighted the commercialization phase of its AI investments, reporting substantial growth in AI model and application services with an annual recurring revenue (ARR) projected to exceed RMB 10 billion in the June quarter and RMB 30 billion by year-end.