- Alibaba's AI Cloud and Compute Services unit is expected to post more than 50% revenue growth for the September quarter, accelerating from 45% in the preceding quarter, according to analysts.
- The unit's profit margins are also projected to rise, indicating progress in monetizing Alibaba's large AI investments.
- The growth is driven by strong returns on Alibaba's aggressive AI investment blitz.
Quotes
“Alibaba Group Holding is expected to report a 50 per cent revenue surge for its cloud and artificial intelligence unit for the September quarter, driven by strong returns on its aggressive AI investments, according to analysts.”
“Analysts across several financial institutions projected revenue growth for the Chinese tech giant’s AI Cloud and Compute Services unit to have accelerated in the three months ended September 30, up from the 45 per cent growth seen in the preceding quarter.”
“The unit’s profit margins are also expected to rise, signalling progress in Alibaba’s efforts to monetise its massive AI investments.”