Alibaba's AI Cloud Revenue Surges 45% in June Quarter
In the second quarter, Alibaba Group Holding showcased robust growth in its AI and cloud sector, recording a remarkable 45% increase in revenue, amounting to 48.4 billion yuan—its strongest performance in 22 quarters. The segment, now termed AI Cloud and Compute Services, encompasses cloud operations and chip production through T-Head. Revenue from AI products soared by over 100% for the twelfth straight quarter, reaching 12.4 billion yuan, up from 8.97 billion yuan. Overall, total revenue improved by 9% year-on-year to 269 billion yuan, surpassing forecasts. However, adjusted EBITDA experienced a 30% decline to 27.3 billion yuan, as capital expenditures rose significantly.
Key facts
- Alibaba's cloud and AI division revenue grew 45% year on year in the June quarter.
- AI Cloud and Compute Services posted 48.4 billion yuan in revenue for the three months ended June 30.
- AI-related product revenue grew triple digits for the 12th consecutive quarter, reaching 12.4 billion yuan.
- Total revenue increased 9% year on year to 269 billion yuan.
- Adjusted EBITDA dropped 30% year on year to 27.3 billion yuan.
- Capital expenditure surged 75% year on year to 67.7 billion yuan.
- Free cash outflow more than doubled to 44.7 billion yuan from 18.8 billion yuan a year earlier.
- The company is based in Hangzhou.
Entities
Institutions
- Alibaba Group Holding
- AI Cloud and Compute Services
- T-Head
Locations
- Hangzhou
- China