On August 20, 2026, Alibaba Group released its quarterly results for the period ending June 2026, with Alibaba Cloud's external commercial revenue growth accelerating to 45%, marking the highest level in 22 quarters. During this quarter, AI cloud and computing services revenue reached 48.437 billion yuan, with adjusted EBITA of 5.628 billion yuan, surging 133% year-over-year and pushing the profit margin to 12%.

AI-related product revenue achieved triple-digit year-over-year growth for the 12th consecutive quarter, reaching 12.376 billion yuan in this period and driving Alibaba Cloud's accelerated expansion. In the previous quarter, Alibaba Cloud generated revenue of 41.626 billion yuan, up 38% year-over-year, with adjusted EBITA of 3.796 billion yuan, of which AI-related product revenue contributed 8.971 billion yuan.

For the first half of 2026 (January to June), Alibaba Cloud posted total revenue of 90.063 billion yuan with adjusted EBITA of approximately 9.424 billion yuan, including 21.347 billion yuan from AI-related products. Over the past month, Alibaba has significantly accelerated its model release cadence, with major version updates across five model categories—large language, image, voice, video, and music—all achieving performance levels ranking among the world's top tier.

In August, the flagship model Qwen3.8-Max was launched with 2.4 trillion total parameters, ranking third globally on the CodeArena programming benchmark and first on the Artificial Analysis Agentic global leaderboard for agent evaluation. The model has been released with open weights. To date, Alibaba has open-sourced over 460 models, with the Qwen series surpassing 3 billion global downloads. Additional releases include Qwen-Image-3.0, which ranks first in China on Image Arena; Qwen-Audio-3.0-TTS, which ranks first globally on Speech Arena; Wan3.0, which has entered the top tier of video models; and a new music model called HappyShrimp.

On the chip front, T-Head has established a full-stack self-developed chip ecosystem covering GPUs, CPUs, memory, and networking chips, achieving system-level hardware optimization across computing, storage, and networking while enhancing Alibaba's AI infrastructure performance and cost efficiency. The Alibaba Zhenwu AI chip, delivered through Alibaba Cloud services, has achieved large-scale commercial deployment across more than 650 external customers in over 20 industries including autonomous driving, internet, and financial services, validating its capability to support the full AI workload pipeline from training and fine-tuning to inference.

On the enterprise side, Alibaba has launched its flagship agent product "Qwen Office," designed for both individual and enterprise users to enhance workplace productivity. As the industry's first product to simultaneously support desktop agents, cloud agents, and enterprise collaboration agents, Qwen Office is engineered not only to boost individual efficiency but also to address real enterprise AI needs and drive organizational productivity gains.

On the consumer side, the flagship C-end AI application Qwen App is expanding its diversified value-added services and introducing new features focused on productivity and professional functions. Deeply integrated with core ecosystem businesses such as Taobao, Tmall, and Taobao Flash, the Qwen App has enabled 250 million users to experience AI-driven shopping through its intelligent agent features since launch.

The deployment, access, and continuous operation of AI applications have directly stimulated accelerated growth in demand for general cloud resources including computing, storage, and networking. Alibaba Cloud is upgrading its core cloud products into new forms tailored for the Agentic era, evolving comprehensively toward Agentic Cloud. The global cloud computing industry is now entering a new AI-driven growth cycle.

For Alibaba Cloud, the 45% revenue growth and 133% profit increase demonstrate that sustained investments in chips, models, and infrastructure are beginning to translate into sustainably accelerating commercial returns. With the further release of full-stack AI capabilities, this growth trajectory is expected to continue.