Alibaba Cloud's revenue soars on AI product demand
Alibaba Cloud just reported a huge 34% jump in revenue for the October-December quarter of 2025 (fourth quarter of 2025), hitting $5.6 billion.
What's fueling this? A surge in demand for AI-powered products and services (think chatbots and smart tools), which have seen strong growth in recent quarters.
Qwen's success and Alibaba's AI investment strategy
Qwen, Alibaba's AI chatbot, racked up 10 million downloads in its first week and inspired over 180,000 spin-off models on Hugging Face, twice as many as any rival.
CEO Eddie Wu said the company has entered an investment phase to build long-term strategic value in AI technologies and infrastructure.
Plus, with partnerships like the new one with SAP to bring Qwen tech to global businesses, Alibaba is betting hard on an AI-driven future, even with chip shortages looming.