Alibaba Group reported fiscal first-quarter revenue of RMB 247.65 billion (US$34.6 billion), missing analysts’ RMB 253.17 billion consensus, while adjusted earnings per share slipped 10% year-on-year to RMB 14.75. Net income nevertheless jumped 76% to RMB 42.38 billion, helped by investment gains, and the operating margin held at 14%. The Cloud Intelligence unit, now Alibaba’s main growth driver, posted a 26% revenue increase to RMB 33.4 billion. AI-related products recorded triple-digit growth for an eighth consecutive quarter and account for more than 20% of external cloud sales. Executives said the company has invested over RMB 100 billion in AI infrastructure and is prioritising scale over near-term margins in the segment. Separately, the company is testing a home-grown AI chip aimed at a broad range of inference tasks, a move that could reduce dependence on Nvidia processors amid tightened US export rules. The processor, fabricated by a mainland manufacturer, expands Alibaba’s push to build a full domestic AI hardware–software stack. Alibaba repurchased 667,200 ADRs for about US$10 million on 28 August and reiterated plans to channel cash into its “consumption” and “AI + cloud” pillars. The results and chip news sent the shares as much as 12% higher in US trading on Friday.