Alibaba Group Holding Limited

Good day, ladies and gentlemen. Thank you for standing by and welcome to Alibaba Group's December quarter 2025 results conference call. At this time, all participants are on listen-only mode. After management's prepared remarks, there will be a Q&A session. I would now like to turn the call over to Lydia Liu, Head of Investor Relations of Alibaba Group. Please go ahead.

Thank you. Good day, everyone, and welcome to Alibaba Group's December quarter 2025 earnings conference call. Joining us today are Jing Cai, Chairman, Eddie Wu, Chief Executive Officer, Toby Xu, Chief Financial Officer, Jiang Fan, Chief Executive Officer of Alibaba eCommerce Business Group. I would like to remind you that this call is also being webcast on our copy website. A replay of the call will be available on our website later today. Now, I will quickly cover the safe harbor. Today's discussions may contain forward-looking statements based on current expectations and assumptions that are subject to risks and uncertainties. Actual results may differ materially. Please refer to the safe harbor statements that appear in our press release and investor presentation provided today. Please note that certain financial measures are expressed on a non-GAAP basis. Our GAAP results and reconciliations of GAAP to non-GAAP measures is included in today's earnings press release and investor presentation. Our comments will be on year-over-year comparisons unless we state otherwise. And now I will turn the call over to Eddie.

Thank you, and welcome to this quarter's earnings call. Over the past quarter, we maintained strong investment momentum in our two strategic priorities, AI plus cloud and consumption. Cloud intelligence group revenue growth accelerated to 36%, while our quick commerce business continued to expand in scale with ongoing improvement in unit economics. With the dawn of the AI agent era, the addressable market for AI infrastructure providers like Alibaba is set to grow exponentially. AI models and their capabilities are rapidly being embedded into mainstream work environments across all industries, with token consumption surging across sectors. Cloud and software budgets for enterprise IT services have traditionally represented only around 5% of corporate revenue. As model-driven agents begin to handle mainstream work tasks across industries, our total addressable market will expand by several multiples. From AI infrastructure to the application layer, Alibaba has built a complete full-stack AI capability set to support the exponential growth in AI demand. Faced with an industry transformation and strategic opportunity of this magnitude, Alibaba Group is itself entering a new phase of entrepreneurial reinvention and critical investment oriented toward the future. Next, let me share Alibaba's AI strategic roadmap. We have complete full-stack AI capabilities. Ships and cloud computing form the AI infrastructure layer, while the AI application layer is anchored by Alibaba Token Hub and comprises foundation models, mass, and both enterprise and consumer applications. Together, these give us end-to-end coverage across the full stack from AI infrastructure to applications. Given the enormous and sustained growth momentum of the AI market, combined with Alibaba's full-stack positioning across the AI value chain, the business goal of Alibaba's AI strategy is very clear. Over the next five years, our goal is to surpass US$100 billion in combined cloud and AI external revenue, including mass. Regarding our infrastructure, driven by sustained strong AI demand, cloud intelligence groups' revenue from external customers accelerated to 35% this quarter, with AI-related product revenue delivering triple-digit year-over-year growth for the 10th consecutive quarter. Cloud Intelligence Group's market share has grown for three consecutive quarters, rising to 36%, with our lead continuing to widen. Alibaba Cloud's cumulative external revenue through February for fiscal year 2026 officially surpassed 100 billion RMB. Over the past three months, token consumption on the Model Studio platform has grown by six times.