
China's Alibaba sees revenue surge on back of artificial intelligence, e-commerce
Chinese e-commerce firm Alibaba Group Holding posted its fastest revenue growth in more than a year, beating analyst expectations as it capitalizes on the artificial intelligence boom in China.
Alibaba said Thursday that its revenue for the quarter ended December grew 8% to 280.2 billion yuan ($38.38 billion) compared to the same period last year.
Net income surged to 48.9 billion yuan ($6.71 billion). Alibaba's New York-traded stock was up over 12% following the earnings results.
In an earnings call, Alibaba CEO Eddie Wu said that Alibaba plans to "aggressively invest" in artificial intelligence and cloud computing infrastructure in the coming three years, with upcoming spending expected to exceed what the firm has already invested over the past decade.
"This quarter's results demonstrated substantial progress in our 'user first, AI-driven' strategies and the re-accelerated growth of our core businesses," Wu said.
He said that Alibaba's artificial intelligence strategy was to pursue artificial general intelligence (AGI), which is artificial intelligence that can match or surpass human intelligence and can self-teach.
He added that such an opportunity for industry transformation is something that comes along "once every several decades" and said that AGI was Alibaba's primary goal.
Alibaba's plan to go big on artificial intelligence comes as rivalry in the AI space heats up between U.S. and China. Chinese AI firm DeepSeek recently rattled the U.S. AI industry after its AI model appeared to rival those of leading U.S. companies while being trained on cheaper hardware.
The Hangzhou-headquartered firm is one of many technology firms in China who are racing to get ahead in the AI space. In January, it unveiled its latest Qwen AI models that have performed well in benchmark tests, placing Alibaba among the leading companies in China's AI industry.
Alibaba is working with Apple to incorporate its AI technology into Chinese iPhones, the firm said earlier this month.
Alibaba has already implemented AI technology into its cloud products, with its cloud business unit generating 13% revenue growth compared to the same time last year – the fastest pace in about two years.
Its international commerce unit, which includes platforms such as AliExpress and Lazada, saw revenue growth of 32% driven by "strong performance of cross-border businesses."
Alibaba was one of several prominent Chinese technology companies which suffered the brunt of a regulatory crackdown on the technology industry in 2020, when authorities scuppered the initial public offering of its financial affiliate Ant Group.
The company was later fined a record $2.8 billion for violating anti-monopoly laws. Jack Ma, one of Alibaba's cofounders, disappeared from public view and the company's stock price slumped for several years.
But Beijing appears to have shifted gears towards the technology industry as it pursues technology supremacy and self-sufficiency amid deteriorating U.S.-China relations.
Chinese President Xi Jinping recently held a private symposium, meeting with prominent entrepreneurs including Ma.
The meeting, coupled with DeepSeek's AI advancements, were among the factors that sparked renewed interest in the Chinese technology industry, sending technology stocks soaring in recent weeks.
Alibaba's stock price is up more than 60% this year. Its U.S.-listed shares rose 8.5% in morning trading, to $136.58.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Nahar Net
18 hours ago
- Nahar Net
Netherlands bans far-right Israeli ministers as EU considers sanctions over Gaza
by Naharnet Newsdesk 29 July 2025, 15:23 The Netherlands has banned two far-right Israeli ministers from entering the country and the European Union has proposed suspending Israel from a lucrative tech investment program as frustration mounts over worsening conditions in Gaza. The ban targets hard-line National Security Minister Itamar Ben-Gvir and Finance Minister Bezalel Smotrich, key partners in Prime Minister Benjamin Netanyahu's coalition. It was announced in a letter sent late Monday by Dutch Foreign Minister Caspar Veldkamp to lawmakers along with other measures, declaring "The war in Gaza must stop." The pair are champions of the Israeli settlement movement that supports continuing the war in Gaza, facilitating what they call the voluntary emigration of its Palestinian population and building Jewish settlements. Britain, Australia, Canada, New Zealand and Norway imposed financial sanctions on the two men last month. EU considers sanctions on Israel's science and tech access The European Commission on Monday proposed partially suspending Israel's access to a lucrative science and technology program. The European Parliament could call a vote to cut off Israel's access to the investment arm of the European Innovation Council. To pass, the vote would need 55% of the bloc's 27-member nations. The €900 million investment program is focused on small businesses and "disruptive innovations" that have "potential dual-use applications, such as in cybersecurity, drones, and artificial intelligence," the commission said in a statement. It said the partial suspension of Israeli companies from applying for grants or equity investments worth €200 million annually is a targeted and reversible action and keeps intact Israel's access to roughly two-thirds of the program that is for civilian use. The commission found Israel's military campaign in Gaza breached terms of a bilateral deal between Brussels and Israel known as an Association Agreement, according to senior officials tasked with communicating for the commission who were not authorized to speak publicly. European countries pressure Israel to let in more aid Europe has widely soured on Israel over Gaza. Countries including Ireland, Spain and the Netherlands have sought to aggressively pressure Israel to let in more aid and cease military operations. Israel has yet to reach the six points agreed in a new aid deal with the EU, which include adequate amounts of daily trucks allowed or newly opened border crossings, according to senior officials. EU aid teams have been prevented from entering Gaza despite recent humanitarian pauses. The suspension is one of 10 options presented by the commission to member states. Other steps could be suspending an aviation agreement, blocking imports from settlements and curtailing travel for Israelis in the visa-free zone known as Schengen, according to a leaked document seen by The Associated Press and verified by two EU diplomats. Like the Netherlands, other nations could act on their own to sanction specific companies or individuals in Israel or the occupied West Bank. Pressure has been mounting on the Dutch government, which is gearing up for elections in October, to change course on Israeli policy. Last week, thousands demonstrated at train stations across the country, carrying pots and pans to signify the food shortage in Gaza. The government also will summon the Israeli ambassador to the Netherlands to urge Netanyahu to change course and "immediately take measures that lead to a substantial and rapid improvement in the humanitarian situation throughout the Gaza Strip," Veldkamp wrote. Ben-Gvir and Smotrich remained defiant. In a statement on social media, Smotrich said European leaders were surrendering to "the lies of radical Islam" and Jews may not be able to live safely in Europe in the future. Ben-Gvir said in Europe "a Jewish minister from Israel is unwanted, terrorists are free, and Jews are boycotted," but he will continue to act. Israel says Hamas is the reason aid isn't reaching Gaza After international pressure, Israel over the weekend announced humanitarian pauses, airdrops and other measures meant to allow more aid to Gaza, but Palestinians say little or nothing has changed on the ground. The U.N. has described it as a one-week scale-up of aid and Israel has not said how long the latest measures would last. Israel asserts Hamas is the reason aid isn't reaching Palestinians in Gaza and accuses its militants of siphoning aid to support its rule in the territory. The U.N. denies aid looting is systematic and says it lessens or ends entirely when enough aid is allowed to enter Gaza. Netanyahu and his former defense minister, Yoav Gallant, are wanted by the International Criminal Court over allegations of crimes against humanity. They are accused of using "starvation as a method of warfare" by restricting humanitarian aid and of intentionally targeting civilians in Israel's campaign against Hamas in Gaza. Member states of the ICC are obliged to arrest the men if they arrive on their territory.


Nahar Net
18 hours ago
- Nahar Net
Trump's tariffs could squeeze US factories and boost costs by up to 4.5%
by Naharnet Newsdesk 29 July 2025, 15:56 As President Donald Trump prepares to announce new tariff increases, the costs of his policies are starting to come into focus for a domestic manufacturing sector that depends on global supply chains, with a new analysis suggesting factory costs could increase by roughly 2% to 4.5%. "There's going to be a cash squeeze for a lot of these firms," said Chris Bangert-Drowns, the researcher at the Washington Center for Equitable Growth who conducted the analysis. Those seemingly small changes at factories with slim profit margins, Bangert-Drowns said, "could lead to stagnation of wages, if not layoffs and closures of plants" if the costs are untenable. The analysis, released Tuesday, points to the challenges Trump might face in trying to sell his tariffs to the public as a broader political and economic win and not just as evidence his negotiating style gets other nations to back down. The success of Trump's policies ultimately depends on whether everyday Americans become wealthier and factory towns experience revivals, a goal outside economists say his Republican administration is unlikely to meet with tariffs. Trump has announced new frameworks with the European Union, Japan, the Philippines, Indonesia and Britain that would each raise the import taxes charged by the United States. He's prepared to levy tariffs against goods from dozens of other countries starting on Friday in the stated range of 15% to 50%. The U.S. stock market has shown relief the tariff rates aren't as high as Trump initially threatened in April and hope for a sense of stability going forward. Trump maintains the tariff revenues will whittle down the budget deficit and help whip up domestic factory jobs, all while playing down the risks of higher prices. "We've wiped out inflation," Trump said last Friday before boarding Marine One while on his way to Scotland. But there's the possibility of backlash in the form of higher prices and slower growth once tariffs flow more fully through the world economy. A June survey by the Atlanta Federal Reserve suggested companies would on average pass half of their tariff costs onto U.S. consumers through higher prices. Labor Department data shows America lost 14,000 manufacturing jobs after Trump rolled out his April tariffs, putting a lot of pressure as to whether a rebound starts in the June employment report coming out Friday. With new tariffs in place, there are new costs for factories The Washington Center for Equitable Growth analysis shows how Trump's devotion to tariffs carries potential economic and political costs for his agenda. In the swing states of Michigan and Wisconsin, more than 1 in 5 jobs are in the critical sectors of manufacturing, construction, mining and oil drilling and maintenance that have high exposures to his import taxes. The artificial intelligence sector Trump last week touted as the future of the economy is dependent on imports. More than 20% of the inputs for computer and electronics manufacturing are imported, so the tariffs could ultimately magnify a hefty multitrillion-dollar price tag for building out the technology in the U.S. The White House argues American businesses will access new markets because of the trade frameworks, saying companies will ultimately benefit as a result. "The 'Made in USA' label is set to resume its global dominance under President Trump," White House spokesman Kush Desai said. Still lots of uncertainty, but world economy faces a new toll There are limits to the analysis. Trump's tariff rates have been a moving target, and the analysis looks only at additional costs, not how those costs will be absorbed among foreign producers, domestic manufacturers and consumers. Also, the legal basis of the tariffs as an "emergency" act goes before a U.S. appeals court on Thursday. Treasury Secretary Scott Bessent said in an interview last week on Fox Business Network's "Kudlow" show countries were essentially accepting the tariffs to maintain access to the U.S. market. "Everyone is willing to pay a toll," he said. But what Bessent didn't say is U.S. manufacturers are also paying much of that toll. "We're getting squeezed from all sides,'' said Justin Johnson, president of Jordan Manufacturing Co. in Belding, Michigan, northeast of Grand Rapids. His grandfather founded the company in 1949. The company, which makes parts used by Amazon warehouses, auto companies and aerospace firms, has seen the price of a key raw material — steel coil — rise 5% to 10% this year. Trump has imposed 50% tariffs on imported steel and aluminum. Jordan Manufacturing doesn't buy foreign steel. But by crippling foreign competition, Trump's tariffs have allowed domestic U.S. steelmakers to hike prices. Johnson doesn't blame them. "There's no red-blooded capitalist who isn't going to raise his prices'' under those circumstances, he said. Trump says no inflation from tariffs, but businesses see higher prices The Trump White House insists inflation is not surfacing in the economy, issuing a report through the Council of Economic Advisers this month saying the price of imported goods fell between December of last year and this past May. "These findings contradict claims that tariffs or tariff-fears would lead to an acceleration of inflation," the report concludes. Ernie Tedeschi, director of economics at the Budget Lab at Yale University, said that the more accurate measure would be to compare the trends in import prices with themselves in the past and that the CEA's own numbers show "import prices have accelerated in recent months." The latest estimate from the Budget Lab at Yale is the tariffs would cause the average household to have $2,400 less than it would otherwise have. Keeping the economy on a knife's edge Josh Smith, founder and president of Montana Knife Co., called himself a Trump voter but said he sees the tariffs on foreign steel and other goods as threatening his business. For instance, Smith just ordered a $515,000 machine from Germany that grinds his knife blades to a sharp edge. Trump had imposed a 10% tax on products from the EU that is set to rise to 15% under the trade framework he announced Sunday. So Trump's tax on the machine comes to $77,250 — about enough for Smith to hire an entry-level worker. Smith would happily buy the bevel-grinding machines from an American supplier. But there aren't any. "There's only two companies in the world that make them, and they're both in Germany,'' Smith said. Then there's imported steel, which Trump is taxing at 50%. Until this year, Montana Knife bought the powdered steel it needs from Crucible Industries in Syracuse, New York. But Crucible declared bankruptcy last December, and its assets were purchased by a Swedish firm, Erasteel, which moved production to Sweden. Smith beat the tariffs by buying a year's worth of the steel in advance. But starting in 2026, the specialty steel he'll be importing from Sweden is set to be hit with a 50% duty. "The average American is not sitting in the position I am, looking at the numbers I am and making the decisions each day, like, 'Hey, we cannot hire those extra few people because we might have to pay this tariff on this steel or this tariff on this grinder,''' he said. "I want to buy more equipment and hire more people. That's what I want to do."


Nahar Net
18 hours ago
- Nahar Net
Top Chinese, US trade officials huddle in Sweden for second day of thorny tariff talks
by Naharnet Newsdesk 29 July 2025, 15:22 Chinese and U.S. trade officials arrived for a second day of meetings in the Swedish capital Tuesday to try to break a logjam over tariffs that have skewed the pivotal commercial ties between the world's two largest economies. U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng made no public comments to reporters after the first day of talks that lasted nearly five hours behind closed doors at the Swedish prime minister's office Monday. Before the talks resumed Tuesday, Swedish Prime Minister Ulf Kristersson met with Bessent and U.S. trade representative Jamieson Greer over breakfast. The United States has struck deals over tariffs with some of its key trading partners — including Britain, Japan and the European Union — since President Donald Trump announced "Liberation Day" tariffs against dozens of countries in April. China remains perhaps the biggest unresolved case. "The Chinese have been very pragmatic," Greer said in comments posted on social media by his office late Monday. "Obviously we've had a lot of tensions over the years. We have tensions now, but the fact that we are regularly meeting with them to address these issues gives us a good footing for these negotiations." "Whether there will be a deal or not, I can't say," Greer added in the clip posted on X from MSNBC's "Morning Joe". "Whether there's room for an extension, I can't say at this point. But the conversations are constructive and they're going in the right direction." Many analysts expect that the Stockholm talks, at a minimum, will result in an extension of current tariff levels that are far lower than the triple-digit percentage rates as the U.S.-China tariff tiff crescendoed in April, sending world markets into a temporary tailspin. The two sides backed off the brink during bilateral talks in Geneva in May and agreed to a 90-day pause — which is set to end on Aug. 12 — of those sky-high levels. They currently stand at U.S. tariffs of 30% on Chinese goods, and China's 10% tariff on U.S. products. Other issues on the agenda include access of American businesses to the Chinese market; Chinese investment in the U.S.; components of fentanyl made in China that reach U.S. consumers; Chinese purchases of Russian and Iranian oil; and American steps to limit exports of Western technology, like chips that help power artificial intelligence systems. The Stockholm meetings could also provide some clarity about the prospects for a summit to be held later this year between Trump and Chinese President Xi Jinping, seen by some as a crucial step to lock in any major agreements between their two countries. On his Truth Social media platform, Trump insisted late Monday that he was not "seeking" a summit with Xi, but may go to China at the Chinese leader's invitation, "which has been extended. Otherwise, no interest!" While the Chinese side has offered few specifics of its aims in Stockholm, Bessent has suggested that the situation has stabilized to the point that China and the U.S. can start looking toward longer-term balance between their economies. Since China vaulted into the global trading system about two decades ago, the United States has sought to press leaders in Beijing to encourage more consumption in China and offer greater market access to foreign-made — including American — goods. Wendy Cutler, a former U.S. trade negotiator and now vice president at the Asia Society Policy Institute, said that Trump's team would face challenges from "a large and confident partner that is more than willing to retaliate against U.S. interests." Rollover of tariff rates "should be the easy part," she said, warning that Beijing has learned lessons since the first Trump administration and "will not buy into a one-sided deal this time around." On Monday, police have cordoned off a security zone along Stockholm's vast waterfront as rubbernecking tourists and locals sought a glimpse of the top-tier officials through a phalanx of TV news cameras lined up behind metal barriers. Flagpoles at the prime minister's office were festooned with the American and Chinese flags.