Alibaba Group Holding Ltd. posted a 9% rise in revenue for the quarter ending June 30, reporting 268.95 billion yuan ($40.02 billion) versus analysts’ estimate of 268.88 billion yuan. The growth was anchored by robust demand for artificial‑intelligence services that power its cloud business.

AI cloud fuels growth

The company’s AI cloud and compute services revenue surged 45% to 48.44 billion yuan, reflecting a broader trend of businesses deploying AI applications that require extensive computing power. Alibaba, China’s largest cloud provider, has increased investment in AI infrastructure, proprietary models and related applications, positioning the technology as a central growth engine for both its cloud and consumer segments.

Capital spending and the “618” festival

Capital expenditures rose 75% to 67.68 billion yuan as Alibaba continues to expand its AI‑focused data centers and related capabilities. In addition, an extended “618” shopping festival—China’s mid‑year sales event—provided a lift to the core e‑commerce unit, contributing to the overall revenue increase.

Outlook

Analysts see the company’s focus on AI and cloud services as a long‑term growth catalyst, especially as Chinese enterprises accelerate digital transformation. Alibaba’s earnings beat expectations, underscoring the firm’s resilience amid a competitive technology landscape.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.