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Alibaba Reports AI-Fueled Cloud Jump as Qwen App Hits 10 Million Downloads

Latest earnings show cloud revenue up 34% year over year on sustained demand for AI products.

Overview

  • Qwen surpassed 10 million downloads within a week of its relaunch, lifting Alibaba’s Hong Kong shares roughly 4%–5%.
  • Alibaba consolidated prior AI apps under the Qwen brand and plans agentic shopping and lifestyle integrations across Taobao, including maps, food delivery and travel booking.
  • Fiscal Q2 revenue reached 247.8 billion yuan, beating estimates, as Cloud Intelligence revenue rose to 39.8 billion yuan with AI product sales growing at triple-digit rates for a ninth straight quarter.
  • The company disclosed about 120 billion yuan of AI and cloud capital spending over the past four quarters within a three‑year plan totaling 380 billion yuan.
  • Profitability declined as Alibaba invested in instant commerce, with management citing improved unit economics and Taobao user growth, and competition intensified as Ant Group’s LingGuang topped 1 million downloads in four days.