Alibaba Group released fiscal 2027 first-quarter results. On the analyst call,
CEO Wu Yongming said the AI-agent boom is directly increasing demand for tokens
and GPU compute and materially lifting demand for traditional cloud products
including CPU compute, storage, databases and networking. Alibaba Cloud is
upgrading toward an agentic cloud. As of August, model-and-application services
ARR, including MaaS, has surpassed RMB16 bln. Current market feedback and
contract orders indicate compute demand will remain greater than supply; as
Alibaba expands supply capacity, AI+cloud revenue growth will continue to
accelerate and profitability will continue to improve over the next several
quarters.
