00:00How did Baba do it, Tom? Where did it exceed expectations?
00:06Yeah, Vonnie, an interesting time as we talk about those tensions between Japan and China and the moves by President Trump to secure the lead that the U.S. currently has when it comes to AI because Alibaba really is a litmus test in terms of how far and how effectively China is particularly pushing the adoption as well as the innovation around AI.
00:24So the top lines of revenue, yes, it was a beat. E-commerce was also a beat for Alibaba. This is a stock that's already up about 100% year to date.
00:30So it's had a massive run up. But the focus of scrutiny really is on how it is delivering on AI.
00:35And the key part of the business, because this is a multifaceted business, Alibaba, the key focus when it comes to AI is the cloud intelligence unit.
00:42And there you saw growth of 34%, 34% growth in terms of the cloud infrastructure bit, showing that demand from their end consumers and enterprises in China to ensure that they have access to those cloud offerings of Alibaba.
00:55So that is good news. We're also hearing from executives saying that they are going to be investing free cash flow into future innovation.
01:01So read into that AI. This is after four straight quarters where CapEx and spending on AI infrastructure, according to executives, came in at about 17 billion U.S. dollars.
01:11This is a company as well that's had recent success with its own relaunched chatbot with a lot of demand from Chinese consumers for that as well.
01:18So it seems to be Alibaba continues to be well positioned to lead domestically in China when it comes to the AI story, a company that has really reshaped and reformed its focus around AI innovation and getting it into all of its end products.
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