Media365
Shares of Alibaba Group Holding jumped 8.2 per cent to close at US$145.81 in New York on Wednesday local time, as the firm ramps up its commitment to artificial intelligence.
It expected its annualised recurring revenue from AI models and applications to hit 30 billion yuan by the year’s end, while AI products are projected to generate more than 50 per cent of Alibaba’s cloud-computing revenue within the next year.
Alibaba’s total revenues reached 243.4 billion yuan in the first three months of 2026, missing the Bloomberg consensus estimate of 246.5 billion yuan.
But the firm’s cloud-computing unit continues to serve as a bright spot, posting 38 per cent year-on-year revenue growth to 41.6 billion yuan, marking the sixth consecutive quarter of double-digit growth for the unit.
During an earnings call on Wednesday, CEO Eddie Wu Yongming highlighted the company’s model and application services as primary drivers for cloud profitability, with annualised recurring revenue expected to surpass 10 billion yuan in the year’s second quarter and 30 billion yuan by year’s end.
