Wu Yongming’s Five-Year Plan: Alibaba Cloud and AI Commercial Revenue to Exceed 100 Billion US Dollars

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Author | Huang Yu

On March 19, Alibaba Group released its Q3 financial report for fiscal year 2026 (October to December 2025). Total revenue grew 2% year-over-year to 284.843 billion yuan, lower than the market expectation of 289.795 billion yuan; adjusted net profit was 16.71 billion yuan, down 67% year-over-year, while the market expected 29.579 billion yuan; net profit attributable to the parent was 16.322 billion yuan, down 67% year-over-year.

The reasons for the profit decline are well known—the company is making substantial investments in the race for instant retail and AI.

Against this backdrop, Alibaba's free cash flow in the fourth quarter last year dropped sharply by 71% to 11.346 billion yuan.

Alibaba Cloud is now the company's second fastest-growing business segment, posting a 36% year-over-year increase in the fourth quarter last year to 43.284 billion yuan, with an acceleration from the third quarter's 34%. The fastest-growing segment is instant retail, which grew 56% year-over-year in the fourth quarter last year.

On the same day's conference call, Alibaba Group CEO Wu Yongming revealed that external commercialization revenue of Alibaba Cloud for fiscal year 2026, as of the end of February, officially surpassed 100 billion yuan. Facing the long-term growth momentum of the AI market, Alibaba Group's commercial goal for its AI strategy is very clear—in the next five years, including MaaS, cloud and AI commercialization revenue will break 100 billion US dollars.

The explosion of AI applications is undoubtedly the core driver of Alibaba Cloud's revenue growth, as revenue from its AI-related products has achieved triple-digit growth for ten consecutive quarters.

Wu Yongming stated that Alibaba has built complete full-stack AI capabilities from AI Infra to applications and is accelerating the development of its MaaS platform. In the past three months, Token consumption in the public model service marketplace of the Bailian MaaS platform increased six-fold. It is expected that commercial MaaS revenue will become Alibaba Cloud's largest revenue product.

Previously, the very "low-profile" Pingtouge made its debut in Alibaba's financial report.

Pingtouge's self-developed GPU has achieved mass production, supporting Alibaba's internal business, and providing commercial services to hundreds of external enterprise customers via Alibaba Cloud, making a substantial contribution to cloud infrastructure supply.

Wu Yongming revealed that as of February 2026, Pingtouge's self-developed GPU chips have been cumulatively delivered in scale, totaling 470,000 units. In Alibaba Cloud's actual business scenarios, more than 60% of Pingtouge chips serve external commercial customers, having completed large-scale adaptation for AI tasks for external clients, supporting AI tasks for over 400 enterprise customers, covering industries including internet, financial services, autonomous driving, and more.

At the model and application layer, on March 16, Alibaba officially announced the establishment of the Alibaba Token Hub (ATH) business group, aiming to build a new organization with "creating Token, delivering Token, applying Token" as its core objective, headed directly by Wu Yongming.

The Alibaba Token Hub business group integrates five business lines, covering the full layout from foundational models to application end: Tongyi Lab is responsible for multimodal foundational model R&D, continuously pushing the model capability limit; the MaaS business line builds an open model service platform to support the industry-wide AI ecosystem; the Qianwen division focuses on personal AI assistants; the AI Innovation division explores new models and markets; the Wukong division is a new department appearing in the public eye for the first time in this organizational adjustment.

The Wukong division is positioned as the "B-end AI native work platform," targeting deep integration of model capabilities into enterprise workflows.

At the financial report conference, Wu Yongming also detailed Alibaba's full-stack AI architecture—with chips and cloud computing as the AI infrastructure layer; with Token Hub as the main thread, and an AI model and application layer composed of large models, MaaS business, and 'to B+to C' applications. Together, these form complete capabilities from AI Infra to applications.

Alibaba's ambitious AI strategic vision was presented more clearly to the outside world.

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