At the third quarter financial report call for fiscal year 2024, Alibaba Group CEO Wu Yongming used the frequency of mentioning "AI" 12 times to send a clear signal to the capital market: this Chinese Internet giant is completing another genetic transformation in its development history - it is growing into China's most core and world-competitive AI giant.

Quarterly financial report data showed that Alibaba Cloud Intelligent Group's revenue increased by 13% year-on-year to 31.742 billion yuan, of which AI-related revenue achieved triple-digit growth for six consecutive months, becoming a key driving force for Alibaba's future development.

Wu Yongming announced that in the next three years, Alibaba will invest more than 380 billion yuan to build cloud and AI hardware infrastructure.

Related reading: Alibaba has built a base for China's AI for 380 billion yuan, and Wu Yongming said that AI will become the world's largest industry

This sets the largest investment record in the field of cloud and AI hardware infrastructure construction in China, and also marks that Alibaba will become the base of the domestic AI ecosystem.

Alibaba also disclosed for the first time that, as Asia's largest cloud computing service provider, Alibaba Cloud has built a computing power network covering 30 regions around the world, supporting the average daily processing of more than 50PB of training data.

The deep logic of this strategic shift has long been foreshadowed in Alibaba's 25-year development trajectory.

From the transaction matching platform in the Taobao era, to the payment infrastructure built by Alipay, to Cainiao's reconstruction of the logistics industry map, to the first, second largest digital empowerment base in China, built by Alibaba Cloud, this company has always been solving the proposition of "commercial operating system".

Now, when the AI ​​technology revolution resonates with the deepening development of the industrial economy, Alibaba's transformation path once again shows clear continuity - transforming itself into a basic foundation for cultivating AI technology and a super test site.

At the same time, in the United States, a joint venture of OpenAI, Japan's SoftBank and Oracle announced a $500 billion investment to build data centers and AI infrastructure.

In Europe, French President Macron announced that he would invest 109 billion euros in the next few years to promote the development of artificial intelligence projects.

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This benchmarking complements the strategic cooperation with Apple announced by Alibaba Chairman Cai Chongxin not long ago.

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The image and status of "AI company Alibaba" in the global vision have been clear and recognized.

This status is first of all, the verification of technical strength.

For example, Alibaba Cloud's self-developed Tongyi Qianwen (Qwe)The n) series has achieved full-size and full-modal open source, and the Qwen2.5-Max model surpasses the top international models such as GPT-4o and Claude-3.5-Sonnet in multiple benchmark tests.

Related reading: In addition to DeepSeek, there is also the Qwen 2.5 Max, which is the global slaughter list. Look at its PK with o3-mini. More importantly, Alibaba has always been a persistent in open source belief in AI and a builder of open source ecosystems. This belief is reshaping the pattern of China's AI industry.

Data shows that the cumulative download volume of the open source big model "Tongyi Qianwen" has exceeded 2 million times, serving more than 90,000 corporate developers, covering eight major industries such as finance, manufacturing, and medical care.

This technology spillover effect has made Alibaba's AI infrastructure attributes increasingly prominent - just as Taobao achieved millions of online merchants back then, today's AI open source ecosystem is incubating a new generation of technological innovators.

Internally, Alibaba has also built a complete giant experimental field for the AI ​​ecosystem.

"In the next three years, Alibaba will focus on the core of AI strategy and increase investment in three aspects: AI infrastructure, basic model platforms, AI native applications, and AI transformation of existing businesses," said Wu Yongming.

Tmall, as the most important real position for AI's "scenario revolution", is providing realistic footnotes for the resurgence of AI commercialization and e-commerce business.

For example, on the user side, "Taobao Question" AI shopping guide assistant is provided. Highly active users interact 8 times a day on average, effectively improving the shopping experience and platform e-commerce conversion rate.

Along the merchant side, 10 free AI tools have been launched for merchants, covering various scenarios such as intelligent model image generation, intelligent scene generation, data weekly report, trend insight, and intelligent product title optimization. During Double Eleven, merchants called AI tools more than 1.5 billion times, greatly improving the operational efficiency of merchants.

In content creation and marketing, the AtomoVideo application launched supports automatic conversion of pictures into videos, helping merchants quickly generate creative short videos.

There are also Alibaba Mama Bailing intelligent marketing and delivery system, AI fitting room, Xiaomi intelligent customer service system, etc., which have built Taobao and Tmall into the richest AI training ground.

On the 1688 platform, a large manufacturing enterprise shortened the supplier screening time from several weeks to several days by introducing an AI supplier matching system, while the procurement cost was reduced by 15%, and the quality pass rate of purchased products was increased by 10%.

When the outside world is still arguing about the feasibility of AGI, AGI is approaching step by step in these scenarios.

"The primary goal of Alibaba Group's AI strategy is to realize AGI. The definition of AGI is that AI can achieve more than 80% of human capabilities. So if AGI comes true, the artificial intelligence industry may become the world's largest industry." Wu Yongming said.

In&quoIn the process of industrial AIization, Cainiao's smart logistics system has also become the best application scenario.

The AI ​​scheduling system deployed in 70 hub-level smart warehouses across the country has increased the efficiency of parcel sorting by 35%. The record of delivery time for the first order in Double 11 in 2023 was refreshed to 4 minutes and 31 seconds.

The more far-reaching impact is that its independently developed logistics model has been opened to the industry, and the utilization rate of the transit capacity of a certain express company after access is increased by 18% after the transfer capacity of a transit company has increased by 18% after access. .

As the implementation of AI strategy and the recovery of cloud business growth, Alibaba's valuation model is also changing.

Goldman Sachs, Morgan Stanley and other institutions believe that their valuations are expected to move closer to AWS (Amazon Cloud) and Azure (Microsoft Cloud) and enjoy the dual premium of 'cloud + AI'. "

According to this, these institutions have raised Alibaba's ratings and target prices, and predicted that Alibaba Cloud's revenue supported by AI will double within three years.

In 2023, Alibaba proposed "All in AI", and especially since 2025, the strategy is visually entering the fast lane.

At the industry level, through open source systems, computing power infrastructure and technology empowerment, it is becoming the base to support China's AI innovation.

This company, which is going to be in 102 years, is completing the transformation from an e-commerce platform to a technology company, and then to an AI company.

Like DeepSeek, Alibaba is participating in the center of the global AI arena as China's most competitive player.