Alibaba reports 9% rise in quarterly revenue

Aug 20 (Reuters) - China's ‌Alibaba on ​Thursday ​reported a 9% rise in quarterly revenue, as strong demand for ‌AI services fueled growth in its cloud ⁠business, while an extended "618" shopping festival boosted its ‌core e-commerce unit.

As businesses ‌increasingly deploy artificial intelligence applications, demand for the cloud computing power needed to ​train and run those systems has surged, benefiting China's largest technology companies.

Alibaba, the ⁠country's biggest cloud services provider, has stepped up investment in ​AI infrastructure, proprietary models and applications, positioning the technology as a key ​growth driver for its ‌cloud and consumer businesses.

The company's AI cloud and compute services revenue ⁠rose 45% to 48.44 billion yuan in the quarter.

Alibaba's capital expenditures rose 75% to 67.68 ⁠billion yuan in the quarter ended June 30, as ​it continued to invest in AI infrastructure to meet strong customer demand.

The company reported revenue of ‌268.95 billion yuan ($40.02 billion) in the first quarter, compared with analysts' ‌average estimate of 268.88 billion yuan, according ⁠to data compiled ‌by LSEG.

($1 = 6.7207 ​Chinese yuan renminbi)

(Reporting by Harshita Mary Varghese in Bengaluru; Editing by Maju ‌Samuel)

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