IT Home (IT之家) May 20 news: Today, Alibaba Group Chairman Joe Tsai and CEO Eddie Wu jointly released a letter to shareholders.

The letter stated that Alibaba's AI business has moved past the initial investment phase and has officially entered a period of commercial returns. "Relying on our accumulated talent, technology, and resources, we are confident in seizing the opportunities of the era and striving to make AI+Cloud another growth engine for Alibaba. To realize this vision, we are increasing investment in full-stack AI capabilities: we will continue to scale up investment in AI infrastructure and self-developed chips; at the model and application layers, we will invest in building stronger foundational model capabilities, attract more applications to connect, and develop more powerful MaaS products to efficiently bridge models and applications."

IT Home (IT之家) attached the original text as follows:

Dear Investors:

Today, we are standing at a critical inflection point for Artificial General Intelligence (AGI).

A large number of AI agents will take on more and more digital work, each driven by model-generated tokens, and will increasingly become the main interface between people and the digital world. Facing such profound industry changes and strategic opportunities, Alibaba Group is in a new round of entrepreneurship, innovation, and critical investment for the future. Here, we would like to share with you our thoughts on the future—including our strategic positioning, competitive advantages, and how to seize the next wave of growth opportunities.

Entering the era of AI agents, AI models and capabilities are rapidly integrating into various mainstream work and business scenarios, with token consumption rising quickly across industries. Providers of full-stack AI capabilities, represented by Alibaba, can see their addressable market grow exponentially. In this context, Alibaba’s AI business has moved beyond the initial investment phase and officially entered a cycle of commercial returns. Driven by strong AI demand, the external commercial revenue growth of Cloud Intelligence Group accelerated to 40% in the last quarter of this fiscal year, with AI-related revenue accounting for 30%. AI is driving the overall upgrade of Alibaba Cloud’s business, shifting growth momentum from traditional computing and storage to models, computing power, and agent services.

At the AI infrastructure layer, our self-developed T-Head AI chip has achieved mass production, providing high-quality computing power support for the cloud computing infrastructure and the Maa5 inference platform. In terms of foundation models, our R&D has accelerated significantly, with the Qwen large model undergoing three stable iterations in the past three months. The latest generation, Qwen3.7-Max, is newly designed for agents, achieving continuous breakthroughs in core capabilities such as programming and reasoning. To complement the Qwen model family, we are also accelerating the deployment of specialized models, including the launch of the open-world model HappyOyster, which supports real-time interactive creation, and the multimodal model HappyHorse, which focuses on cross-modal understanding and generation.

At the application layer, in November 2025, we launched the Qianjian App (千间App) for consumer users, an all-in-one personal AI assistant integrating life, work, and study. The Qianwen App (千问App) is deeply integrated with various applications in the ecosystem, including Taobao Tmall, Taobao Flash Sale, Fliggy, Damai, Amap, Alipay, etc., and has unique advantages in daily life, services, productivity, and entertainment. These broader integrations expand user coverage, enhance user interaction with the Alibaba ecosystem and external services, and solidify our leading position in applied AI. We also launched Wukong (悟空), an enterprise-grade AI-native work platform for enterprise users, which invokes AI agents to handle complex workflows and integrates skill modules built on the Alibaba ecosystem. Together, Wukong (悟空) and the Qianwen App (千问App) form our AI application layout that targets both enterprise and consumer users.

With its full-stack capabilities in the Al value chain, Alibaba holds a strategic advantage in the new era of AI. Relying on its accumulation of talent, technology, and resources, we are confident in seizing the opportunities of the era and strive to turn AI+Cloud into another growth driver for Alibaba. To realize this vision, we are increasing investment in full-stack A capabilities: we will continue to invest more in AI infrastructure construction and self-developed chips; at the model and application levels, we will invest in building stronger foundational model capabilities, attract more applications to access, and simultaneously develop more powerful MaaS products to more efficiently connect models with applications. We see enormous value and development opportunities in the market.

In the consumer sector, instant retail has become a core strategic pillar for the upgrade of Taobao and Tmall platforms. With over 1.1 billion internet users, China also has the world's largest online retail market. Our e-commerce business is rooted in this vibrant large market, and Taobao and Tmall will continue to focus on user growth and experience improvement. We see the strategic significance of instant retail in leveraging AI to acquire new users, enhance user stickiness, meet diverse consumer demands, and increase transaction volume and commercialization levels. Instant retail is a necessary path for us to follow the principle of "Customer First": because consumer behavior has profoundly changed, and the expectation of 30-minute fast delivery has become the norm. We must stay ahead of user needs and remain agile in a rapidly changing market to win the competition.

Growth is the eternal theme of Alibaba. We will deepen technological innovation, deeply integrating cutting-edge technology into our core business. If we can create value for customers, we will inevitably create value for shareholders. We believe that to gain an edge in fierce competition, Alibaba must maintain a "growth mindset" — embrace change, accumulate strength steadily, and win the future with a long-term perspective. This is Alibaba.

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