Alibaba Group announced that its Cloud Intelligence Group reported positive revenue growth for the April-June 2024 quarter, driven by robust demand for its core public cloud and AI products.
The company’s cloud revenue, excluding Alibaba-consolidated subsidiaries, marked a return to growth, with sales reaching RMB 26.5 billion, representing a 6 percent increase year-over-year.
The growth in Alibaba Cloud’s revenue was fueled by a double-digit increase in public cloud services and a significant uptick in AI-related product adoption, which saw triple-digit revenue growth from a low base.
The number of paying users on Alibaba Cloud’s AI platform increased by over 200 percent quarter-over-quarter.
Alibaba attributed this success to its improved product mix, focusing on public cloud adoption and enhanced operational efficiency, resulting in a 155 percent increase in EBITA, reaching RMB 2.3 billion.
Alibaba Cloud at Paris Olympics
A major highlight for Alibaba Cloud in this period was its role as the primary cloud service provider for the Olympic Games, where it provided cloud computing and AI services to the Olympic Broadcasting Services (OBS) during the Paris Olympics.
For the first time in Olympic history, cloud-based live broadcasts powered by Alibaba Cloud surpassed traditional satellite signals as the primary means of broadcasting, with two-thirds of broadcasters relying on Alibaba Cloud to transmit live signals in real time to billions of viewers worldwide.
Additionally, Alibaba Cloud’s AI technology was widely applied at the Paris Olympics, including real-time 360-degree replays, which significantly enhanced the viewing experience.
Alibaba Cloud and the IOC launched a Media Archiving AI solution to help organize, store and retrieve the IOC’s extensive collection of media files, including images, videos and audio content.
“Our cloud-based AI initiatives are designed to help transform the experience for media professionals and the global followers of the Olympic Games,” said Selina Yuan, President of International Business, Alibaba Cloud Intelligence.
Alibaba Cloud strategy
Looking ahead, Alibaba outlined its long-term strategy for integrated cloud and AI development, focusing on three key areas. First, the company plans to optimize its cloud product offerings, emphasizing sustainable gross margins and scalable public cloud products to ensure high-quality growth.
Second, Alibaba aims to strengthen the synergy between its cloud and AI products, supporting existing customers while enabling AI-native enterprises to scale successfully on its platform. Lastly, Alibaba will continue to invest in research and development, as well as AI capital expenditures, to drive the growth of its AI-driven cloud business.
With these strategic initiatives, Alibaba aims to maintain profitable growth while solidifying its position as a leading cloud service provider for AI, supported by intensive R&D investment and a commitment to healthy profitability and market share leadership.
Alibaba’s total quarterly revenue rose 4 percent year-over-year to RMB243.24 billion ($33.47 billion) over the three months ended June 30, 2024.
Baburajan Kizhakedath
