Alibaba Group reports a remarkable 34% increase in cloud revenue for the September quarter, reaching 247.8 billion yuan ($35 billion), driven by a surge in AI demand. Despite this, overall profits plummeted 52% due to intense e-commerce competition. CEO Eddie Wu noted significant AI investments are fueling this growth, as the company’s new chatbot Qwen achieved 10 million downloads within its first week. Shares rose by over 90% this year amid AI optimism, reflecting strong market confidence.