Tech Giants

Alibaba Stock Surges 13% on Strong AI-Driven Cloud Growth

The Chinese tech giant reported a 26% jump in cloud revenue on August 29 and announced it is testing a new in-house AI chip.

Olivia Sharp 2 min read 597 views
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Alibaba's U.S.-listed shares surged 13% on August 29 after the company reported a 26% jump in cloud revenue fueled by AI demand and announced a new in-house AI chip.

Chinese technology giant Alibaba Group saw its U.S.-listed shares surge 13% on August 29, 2025, after the company reported surprisingly strong growth in its cloud division, fueled by intense demand for artificial intelligence products. The company also announced it is testing a new, in-house AI chip, a move seen by investors as a critical step toward technological self-sufficiency.

The strong performance of Alibaba's cloud and AI businesses stood in stark contrast to a broad sell-off in the U.S. tech sector on the same day.

Cloud Becomes the Profit Engine

For its first fiscal quarter, Alibaba's Cloud Intelligence unit reported …

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