Alibaba plans an AI model with 5–10 trillion parameters and unveiled the Zhenwu V900 chip, described as delivering triple its predecessor’s performance. V900 mass production is expected in early 2027; Alibaba Cloud targets more than 20 gigawatts of data-center capacity by 2032.
In the June quarter, Alibaba’s AI cloud and compute revenue rose 45% year over year to RMB48.44 billion ($7.14 billion). AI-related product revenue reached RMB12.38 billion, maintaining triple-digit growth for a 12th consecutive quarter. Cloud adjusted EBITA rose 133% to RMB5.94 billion, with a margin of about 12%. More than 650 external customers use Zhenwu chips across over 20 industries; shares rose 5.1% after the announcements.
Alibaba spent RMB67.68 billion ($9.98 billion) on capital expenditure in the June quarter, up 75% year over year, largely on AI infrastructure; quarterly net profit fell 75% as AI spending increased. Reuters reported the company had spent roughly half of its planned RMB380 billion AI investment for 2026–29 in the first half of 2026. Alibaba expects the AI investment to break even within three years.
