$BABA TTN Summary Earnings Call: AI-related sales now exceed 20% of external customer revenue.; Since May, monthly active consumers on our QuickCommerce business are approaching 300M in August, contributing to a 25% increase in monthly active consumers on the Taobao app
- CapEx for AI and cloud infrastructure reached RMB38.6 billion this quarter, with cumulative R&D investment of RMB100 billion over the past four quarters, underpinning Alibaba Cloud’s return to rapid growth driven by AI demand.
- Cloud & Intelligence Group revenue accelerated to 26% y/y, with AI-related product revenue posting triple-digit growth for the eighth straight quarter and driving strong compute and storage demand, while AI-related sales now exceed 20% of external customer revenue.
- Strategic partnership with SAP positions Alibaba Cloud as SAP’s global cloud computing partner, supporting SAP customers to run core systems on Alibaba’s platform and jointly providing AI transformation services.
- Upgraded the QN3 foundation model family—adding non-think, reasoning and AI coding capabilities—and open-sourced video generation model WAN 2.2 and text-to-image model QN Image, driving rapid overseas adoption of the QN3 coder.
- Launched AMAP 2025, the world’s first AI-native location-based service integrating spatial intelligence into real-world scenarios, and upgraded ThinkTalk with agent-driven work feeds to pioneer next-generation workplace applications.
- Unified Taobao, Tmall Group Elemer and Fliggy into a single China e-commerce group, consolidating supply chains and membership benefits via a tiered loyalty program across UlaMa, Fliggy and AIMa.
- QuickCommerce monthly active consumers approaching 300 million in August, driving a 25% uplift in Taobao’s monthly active base and new daily order volume records.
- Ambition to serve 1 billion consumers across a RMB30 trillion addressable market with an all-in-one AI-powered consumption platform that integrates shopping, services and daily life.
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