Alibaba reported quarterly revenue that fell short of market expectations on Friday, weighed down by ongoing challenges in its core e-commerce segment. The company faced intense competition and weak consumer spending, particularly in China’s slowing retail environment. However, the decline was partially offset by strong growth in its cloud computing division, driven by increasing demand for artificial intelligence infrastructure. Despite the broader revenue miss, Alibaba’s cloud business continued to show resilience and momentum. The segment saw robust growth as enterprises across industries ramped up investments in AI-powered solutions, data centers, and digital transformation. Alibaba Cloud has been actively expanding its AI capabilities, launching new generative AI tools and expanding its global footprint, which helped fuel demand. The results highlight a growing divergence in Alibaba’s business performance, with its cloud and AI initiatives outpacing its traditional e-commerce operations. Analysts noted that while consumer-facing businesses remain under pressure, the company’s strategic shift toward cloud and AI could position it for long-term growth. Alibaba’s leadership continues to emphasize its commitment to innovation in AI and cloud technologies, with plans to further integrate AI into its core services and infrastructure. The company remains focused on transforming its business model to adapt to evolving market dynamics and maintain competitiveness in the global tech landscape.