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
Friday, August 29, 2025 7:38:30 AMEST
“Our QuickCommerce business contributed to the 25% year-over-year growth in Taobao app monthly active consumers in the first three weeks of August”
- In July, we announced plans to invest RMB50 billion in consumption
- Plans to invest 380 billion over the next three years in cloud and AI infrastructure, alongside a RMB50 billion commitment to consumption initiatives launched in July.
- 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.
"AIDC’s adjusted EBITDA loss narrowed significantly, approaching breakeven"
“Free cash flow was an outflow of RMB18.8 billion mainly attributed to our accelerated pace on expanding AI plus cloud infrastructure and investment in Taobao instant commerce”
"Order volume, user scale, merchant supply and delivery capacity have all exceeded expectations since July"
“Our unit economics losses can be reduced by half in the short term”
We now have over 50,000 lightning warehouses with order growth of over 360% year on year and 25% of supply from our ecosystem
“Food-delivery markets are shifting from a single dominant player to multi-platform competition, giving merchants and consumers more choice and benefiting the industry long term”
“Based on supply chain situations and changes in AI chip policies, we have backup plans with partners to ensure uninterrupted execution of our US$380 billion cloud and AI investment plan”
“Demand for both AI training and inference workloads is very strong and continues to grow robustly”
“We can begin gradually to develop commercialized post-training services for our open-source models”
“We are already doing some testing and piloting in certain selected cities to provide more diverse services to QuickCommerce users offline.”
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- In July, we announced plans to invest RMB50 billion in consumption
- Plans to invest 380 billion over the next three years in cloud and AI infrastructure, alongside a RMB50 billion commitment to consumption initiatives launched in July.
- 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.
"AIDC’s adjusted EBITDA loss narrowed significantly, approaching breakeven"
“Free cash flow was an outflow of RMB18.8 billion mainly attributed to our accelerated pace on expanding AI plus cloud infrastructure and investment in Taobao instant commerce”
"Order volume, user scale, merchant supply and delivery capacity have all exceeded expectations since July"
“Our unit economics losses can be reduced by half in the short term”
We now have over 50,000 lightning warehouses with order growth of over 360% year on year and 25% of supply from our ecosystem
“Food-delivery markets are shifting from a single dominant player to multi-platform competition, giving merchants and consumers more choice and benefiting the industry long term”
“Based on supply chain situations and changes in AI chip policies, we have backup plans with partners to ensure uninterrupted execution of our US$380 billion cloud and AI investment plan”
“Demand for both AI training and inference workloads is very strong and continues to grow robustly”
“We can begin gradually to develop commercialized post-training services for our open-source models”
“We are already doing some testing and piloting in certain selected cities to provide more diverse services to QuickCommerce users offline.”